Issue of USD 1.5 billion Fixed Rate Covered Bonds due 2027 under DBS Bank's USD 10 billion Global Covered Bond Programme
Singapore, 11 Mar 2022 - DBS Bank Ltd. has on 10 March 2022 successfully priced the issue of USD 1.5 billion fixed rate covered bonds due 2027 (the “Covered Bonds”) under DBS Bank Ltd.’s USD 10 billion Global Covered Bond Programme (the “Programme”).
The Covered Bonds will bear a fixed rate coupon of 2.375 per cent per annum payable semi-annually in arrear. The Covered Bonds will be guaranteed as to payments of interest and principal by Bayfront Covered Bonds Pte. Ltd. (“BCB”) (herein known as the “Covered Bond Guarantee”). The Covered Bond Guarantee is secured by a portfolio of, inter alia, mortgage loans purchased by BCB from DBS Bank Ltd. and other assets of BCB.
DBS Bank Ltd. has mandated DBS Bank Ltd. to act as the Sole Global Coordinator, and Barclays Bank PLC, Singapore Branch, ING Bank N.V., Singapore Branch, J.P. Morgan Securities plc, RBC Capital Markets, LLC, Société Générale and Wells Fargo Securities, LLC (no books) to act as Joint Lead Managers for the issue of its 5-year fixed rate USD Covered Bonds. The Covered Bonds have been offered to certain non-U.S. investors outside the United States and to qualified institutional buyers (as defined under Rule 144A) within the United States in reliance on Rule 144A under the Securities Act.
The Covered Bonds are expected to be rated AAA by Fitch Ratings Ltd. and Aaa by Moody’s Investors Services Inc.
The settlement date of the Covered Bonds is expected to be 17 March 2022. The net proceeds arising from the issue of the Covered Bonds will be used for the general business purposes of DBS Bank Ltd. and its consolidated subsidiaries.
Application will be made to the Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the listing and quotation of the Covered Bonds on the SGX-ST. There is no guarantee that an application to the SGX-ST will be approved. Admission of the Covered Bonds to the Official List of the SGX-ST is not to be taken as an indication of the merits of DBS Bank Ltd., the Programme or the Covered Bonds. The SGX-ST assumes no responsibility for the correctness of any statement made, opinions expressed or reports contained herein.
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”)), EXCEPT TO “QUALIFIED INSTITUTIONAL BUYERS” (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT)
Relevant stabilisation regulations including FCA / ICMA apply.
No EU PRIIPs or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or in the UK.
EU MiFID II professionals/ECPs-only – Manufacturer target market (EU MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels).
UK MiFIR professionals/ECPs-only – Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). Singapore Securities and Futures Act Product Classification – In connection with Section 309B(1)(c) of the Securities and Futures Act 2001 of Singapore (the “SFA”) and the Securities and Futures (Capital Markets Products) Regulations 2018 (the “CMP Regulations 2018”), DBS Bank Ltd. has determined, and hereby notifies all relevant persons (as defined in Section 309A(1) of the SFA), the classification of the Covered Bonds as “capital markets products other than prescribed capital markets products” (as defined in the CMP Regulations 2018).
This announcement is confidential and solely for the use of the person it is addressed to and its advisers. Release, transmission or distribution to any other person is prohibited. The distribution of this announcement and other information referred to herein may be restricted by law and persons into whose possession this announcement or such other information comes should inform themselves about and observe any such restriction.
This announcement does not constitute or form part of any offer to purchase, a solicitation of an offer to purchase, an offer to sell or an invitation or solicitation of an offer to sell, issue or subscribe for, securities in or into the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) or in any other jurisdiction. No securities mentioned herein have been, or will be, registered under the U.S. Securities Act, or any state securities laws or other jurisdiction of the United States, and such securities may not be offered or sold in or into the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements under the U.S. Securities Act and any applicable state or local securities laws of the United States.
The securities referred to herein will be offered and sold (i) in the United States only to “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) and (ii) only outside the United States to non-U.S. persons in accordance with Regulation S under the U.S. Securities Act.
Not for distribution in the United States or to U.S. persons, except to “qualified institutional buyers” as defined in Rule 144A under the U.S. Securities Act.
There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States or to, or for the account or benefit of, U.S. persons or in any other jurisdiction where such an offering is restricted or prohibited or where such offer would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Nothing in this communication shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful. Any offering of securities will be made by means of one or more offering documents, which will contain detailed information about DBS Bank Ltd., BCB and their management and financial statements. No action has been taken in any jurisdiction that would permit a public offering of the securities to occur in any jurisdiction. Failure to comply with the above restrictions may result in a violation of U.S. securities laws or applicable laws of other jurisdictions.
The Covered Bonds may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the Covered Bonds must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.
No money, securities or other consideration is being solicited by this announcement or the information contained herein and, if sent in response to this announcement or the information contained herein, will not be accepted.
A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension, reduction or withdrawal at any time by the assigning rating organization. Similar ratings on different types of securities do not necessarily mean the same thing. The significance of each rating should be analysed independently from any other rating.
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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
.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
