DBS BANK SUCCESSFULLY PRICES
SGD 1.5 BILLION NON-CONVERTIBLE HYBRID TIER 1 SECURITIES

SINGAPORE, 15 May 2008 - DBS Bank announced that it has today successfully priced an offering of SGD 1.5 billion of non-cumulative, non-convertible, non-voting, guaranteed hybrid Tier 1 securities in the form of preference shares ("HT1 Securities") to augment its Tier 1 regulatory capital base. The offering is expected to close on or around 27 May, 2008.

The HT1 Securities will, subject to customary dividend deferral provisions, pay a
non-cumulative fixed dividend rate of 5.75% per annum, which will be reset to a floating rate equal to the three-month SGD Swap Offer Rate plus 3.415% per annum after 15 June, 2018 ("Step-Up Date"). The HT1 Securities are perpetual but may be redeemed at the option of DBS Bank on the Step-Up Date and on each dividend payment date thereafter. The HT1 Securities have been assigned indicative ratings of "Aa3" by Moody's Investors Service, Inc., "A" by Standard & Poor's Ratings Group and "A+" by Fitch Ratings Ltd.

Jeanette Wong, Chief Financial Officer of DBS Bank, said: "The offering saw extremely strong demand and we are very pleased with the market acceptance of our HT1 Securities. This reflects confidence in DBS' prospects and the bank's sound fundamentals."

The HT1 Securities will be issued by a wholly-owned special-purpose subsidiary of DBS Bank, and will be guaranteed, on a subordinated basis, by DBS Bank. The securities were distributed to institutional investors: 50% to private banks, 34% to insurance companies, 10% to fund managers and the remainder to corporates and other banks.

The offering's sole lead manager and bookrunner is DBS Bank.

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The securities described herein will not be registered under the U.S. Securities Act of 1933 (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction in the United States and, subject to certain exceptions, may not be offered or sold, directly or indirectly, into the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act).

 

About DBS - Living, Breathing Asia
DBS is one of the largest financial services groups in Asia with operations in 16 markets. Headquartered in Singapore, DBS is the largest bank in the country as measured by assets, and a leading bank in Hong Kong. DBS' "AA-" and "Aa1" credit ratings are among the highest in the Asia-Pacific region.

As a bank that specialises in Asia, DBS leverages its deep understanding of the region, local culture and insights to serve and build lasting relationships with its clients. DBS provides the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. The bank is committed to expand its pan-Asia franchise by leveraging its growing presence in mainland China, Hong Kong and Taiwan to intermediate the increasing trade and investment flows between these markets. Likewise, DBS is focused on extending its end-to-end services to facilitate capital within fast-growing countries in Indonesia and India.

DBS acknowledges the passion, commitment and can-do spirit in each of its 14,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com.