DBS raises US$1.5b in two US dollar bond tranches
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The bank issued a two-year fixed rate bond that raised US$750 million and a two-year floating rate note that raised the same amount.
ST PHOTO: LIM YAOHUI
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SYDNEY - Singapore’s DBS Group has raised US$1.5 billion (S$2 billion) in two US dollar bond tranches, according to a term sheet reviewed by Reuters.
The bank issued a two-year fixed rate bond that raised US$750 million and a two-year floating rate note that raised the same amount, the term sheet said.
The coupon on the fixed rate note was set at 5.479 per cent while the floating rate note was priced at the Secured Overnight Financing Rate plus 61 basis points.
DBS did not comment on the deal but confirmed the transaction in a term sheet sent to Reuters.
Investors subscribed for more than US$2.65 billion of the two-year fixed rate bond, the term sheet showed.
The floating rate note attracted more than US$2 billion in orders from investors.
United States and Asia-based investors bought nearly 90 per cent of the fixed bond and accounted for 98 per cent of the floating note, the term sheet showed.
DBS has flagged that the proceeds from the bonds would be used for its finance and treasury activities. REUTERS
