LTA Bond Deposits

LTA launched its debut S$300 million 10-year Bond Issue on 5 July 99. To introduce a wider range of investors to the bond market, DBS Bank offered 1-year Bond Deposits to the public, backed by LTA Bonds.

Application for the Bond Deposits closed at 10.00 am today and response for the 1-year Bond deposits was encouraging with 3,600 applications received for S$26 million of Bond Deposits or a subscription rate of 1.04 times (based on an initial issue size of S$25 million). This Bond Issue attracted the most applicants compared to other bond issues whose retail tranche attracted about 1,000 applicants.

The 10-year Bonds and 1-year Bond Deposits will commence trading from Wednesday, 14 July 99. DBS Bank will make a market for the 10-year Bonds and 1-year Bond Deposits. Both the Bonds and Bond Deposits can be transacted in the secondary market through the Stock Exchange and DBS Bank’s branches.

Mr Eric Ang, Managing Director and Head of DBS Capital Markets said, "We are pleased with the response from the public. The subscription rate is within our expectation. The demand from retail investors for bonds is currently about S$20 million per issue. It is for this reason that we had an initial issue size of S$25 million and depending on demand, could have increased the size up to S$50 million. We are most encouraged by the number of applications received and DBS Bank will continue to make available such offerings to retail investors. This will help in the development of the bond market."