SINGAPORE - DBS Group Holdings said its first US dollar-denominated Additional Tier 1 securities have attracted strong interest, with an order book of close to US$6.5 billion (S$8.86 billion), making the offer 8.7 times subscribed.

DBS has priced the issue of US$750 million perpetual securities at 3.6 per cent, the bank said in a filing to the Singapore Exchange on Wednesday (Aug 31).

The issue comes under DBS' US$30 billion Global Medium Term Note Programme.

The bonds are expected to be issued on Sept 7 at a distribution rate of 3.6 per cent per year. They will reset on Sept 7, 2021, and every five years thereafter at the reset distribution rate equal to the then prevailing five-year US Dollar Swap Rate plus 2.39 per cent, said DBS.

The bank has the sole discretion to cancel any distribution on the securities, with unpaid distributions being non-cumulative. The securities may be redeemed at the option of DBS in whole, but not in part, on Sept 7, 2021, or on any distribution payment date thereafter, subject to the prior approval of the Monetary Authority of Singapore.

DBS said it will use the net proceeds from the issue for its finance and treasury activities, including the provision of intercompany loans to DBS Bank and its subsidiaries.