DBS has completed Singapore’s first trade finance transaction referencing the Bloomberg Short-Term Bank Yield Index (BSBY) with Reliance Global Energy Services (S) Pte Ltd, the energy trading arm in Singapore of the Indian multinational conglomerate, Reliance Industries Limited.

This benchmark pricing option is in addition to the Secured Overnight Financing Rate (SOFR) based pricing which DBS will continue to support and offer. The option of using BSBY is important and helpful for trade finance, especially for high-volume supply chain transactions requiring straight-through processing. This will help pave a smooth transition for corporates as they will not be able to undertake new USD LIBOR contracts after 31 December 2021.

Sriram Muthukrishnan, Group Head of Product Management, Global Transaction Services, DBS, says, “The transition from USD LIBOR remains a clear priority and is an essential task to strengthen the global banking ecosystem. But one of the thorniest challenges faced by corporates is the uncertainty around the implications of the LIBOR transition to risk-free rates for supply chain and trade financing transactions. Today, a significant amount of trade and supply chain financing originates from platforms and digital ecosystems for which suitable reference rates are required to enable efficient and seamless transaction processing. At DBS, we have been actively supporting our clients to understand and explore solutions that facilitate a smooth transition to a post-LIBOR world.”

To help corporates navigate the transition, DBS has been actively engaging its institutional clients to explore alternative solutions that best meet their business needs. This includes partnering corporates plugged into the international trade system to adopt alternative non-LIBOR benchmark options, such as the BSBY.

Other industry milestones achieved by the bank to date include DBS completing the first SOFR-based export financing transaction, pricing Singapore’s first SORA-referenced floating rate note, launching Singapore’s first business property mortgage loan referencing SORA, and executing Singapore’s first SORA-referenced interbank option trade. SORA-pegged loans also now account for one-third of all new SME loans issued by DBS.

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About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. 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. For more information, please visit www.dbs.com.

Reliance completes Singapore's first Bloomberg Short-term Bank Yield (BSBY) Index-linked trade financing with DBS