Adoption of SORA-based products among SMEs grows with DBS issuing more than SGD 450 million in SORA-pegged SME loans to date

Singapore.10 May 2021

SORA-pegged loans now account for one-third of all new SME loans

Singapore, 10 May 2021 - With Singapore ceasing the issuance of new loan products referencing the existing Swap Offer Rate (SOR) at the end of April 2021, DBS reported today strong traction among its SME clients for loans which reference the Singapore Overnight Rate Average (SORA). DBS has issued more than SGD 450 million in SORA-pegged loans as at end April 2021, just over six months after it launched the market’s first SORA-pegged business property loan. This is yet another positive sign for Singapore’s transition towards SORA as its main interest rate benchmark.

SORA-pegged loans now account for about a third of all new SME loans in Singapore issued by DBS.

Joyce Tee, Group Head of SME Banking at DBS, shared that it was important that SMEs were not left behind even as the financial industry progresses with the transition to a SORA-centered SGD interest rate market and the cessation of new SOR-linked loans from end-April 2021. “SMEs form a significant cornerstone of Singapore’s economy, and are critical to ensuring an orderly transition to the new interest rate benchmark. SMEs may not have the resources of larger companies to fully comprehend what the transition to SORA means for the business, so DBS has proactively engaged our SME clients to help them make sense of the changes. We are pleased that SMEs have responded positively to our outreach, with many making the decision to transit to SORA ahead of the industry’s schedule.”

With the impending discontinuation of interest rate benchmarks such as the London Interbank Offered Rate (LIBOR), DBS has been partnering its clients to achieve a smooth and seamless transition to alternative Risk-Free Benchmark Rates[1]. In Singapore, all financial institutions will cease to offer new loan products referencing the existing SOR by the end of April 2021. Additionally, the Singapore Interbank Offered Rate (SIBOR) will cease to be used in new loan products by the end of September 2021[2].

Along the way, DBS broke new ground such as pricing Singapore’s first SORA-referenced floating rate note, closing the first SORA club loan coupled with a cross currency swap, and launching Singapore’s first business property mortgage loan referencing SORA.

More information on the SORA-pegged Business Property Loan can be found at

[1] Risk-Free Benchmark Rates are typically derived from overnight deposit rates, based on a large number of observable transactions.
[2] The Steering Committee for SOR & SIBOR Transition to SORA, 31 March 2021.


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. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 12 consecutive years from 2009 to 2020.

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