DBS prices US$750m subordinated notes due 2028 at 4.52%

DBS has a call option to redeem the notes in the fifth year, on Dec 11, 2023.
DBS has a call option to redeem the notes in the fifth year, on Dec 11, 2023.PHOTO: REUTERS

SINGAPORE - DBS Group Holdings has priced US$750 million (S$999.5 million) of 10-year subordinated notes at a coupon of 4.52 per cent under its US$30 billion global medium term note programme, the bank announced on Wednesday (June 6).

The notes, which are sold at 100 per cent of the principal amount, will be redeemed at par upon maturity on Dec 11, 2028, according to a term sheet.

DBS has a call option to redeem the notes in the fifth year, on Dec 11, 2023. If the notes are not called, the coupon will reset to 159 basis points over the prevailing five-year US-dollar mid-swap rate at the call date.

The bonds are sold under Rule 144A within the United States, and under Regulation S elsewhere in the world. According to DBS, about 42 per cent of the offering went to US investors, while Asia-Pacific investors took 38 per cent. Fund managers took up 81 per cent of the deal, followed by institutional investors, with 12 per cent; private banks and corporate investors, with 4 per cent; and other banks, with 3 per cent.

Net proceeds from the issue of the notes after deducting expenses, is expected to be about US$748 million.

As at noon on Wednesday, shares in DBS were traded 0.1 per cent higher to S$29.15 apiece.