DBS establishes USD 10 billion global covered bond programme

Singapore.16 Jun 2015

Initiative is first for Singapore and opens the domestic covered bond market


Singapore, 16 Jun 2015 - DBS Bank today announced that it has established a USD 10 billion global covered bond programme, a first for the Singapore market. Under the programme, DBS will issue covered bonds from time to time.

Covered bonds are rated higher than unsecured debt, often attaining the coveted AAA rating, as investors have recourse to both the issuer and a portfolio of assets. Issuing covered bonds enables banks to reach investors in high-grade securities.

DBS Chief Financial Officer Chng Sok Hui said, “As Singapore’s largest bank and a leading bank in Asia, we are committed to pioneering capital market developments that bring value to both issuers and investors. Market participants in Asia and globally are eagerly anticipating the opening of the Singapore covered bond market and we are proud to inaugurate it.”

“For DBS, the programme enables us to engage a fresh group of investors and to access liquidity with greater cost efficiency. This will lower our overall funding cost. Subject to market conditions, we look forward to launching our first issue of covered bonds in USD or euro, targeting institutional investors.”

DBS and Barclays are Joint Arrangers of the programme. DBS, Barclays, Citigroup, Deutsche Bank, J.P. Morgan, Société Générale, and UniCredit Bank have been appointed dealers of the programme. A global roadshow is being coordinated to introduce the programme to the international investor base.

Net proceeds from the issuance of covered bonds will be used for the general business purposes of the DBS Group.

Approval in-principle has been received from the Singapore Exchange Securities Trading Limited (the "SGX-ST") for the establishment of the programme and application has been made for permission to deal in and quotation for any covered bonds which are agreed at the time of issue thereof to be so listed on the SGX-ST. Such permission will be granted when such covered bonds have been admitted to the Official List of the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made or opinions expressed or reports contained herein or in the offering circular dated 16 June 2015 in relation to the programme. Approval in-principle received from, admission to the Official List of the SGX-ST and quotation of any covered bonds on the SGX-ST are not to be taken as an indication of the merits of DBS, the covered bond guarantor, their respective subsidiaries, their respective associated companies (if any), the programme or such covered bonds.

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About DBS
DBS - Living, Breathing Asia
DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for six consecutive years from 2009 to 2014.

DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. These market insights and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 21,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.