DBS Group Holdings Ltd’s first green bond offering attracts strong interest
Singapore.19 Jul 2017
DBS is first financial institution in Singapore to issue a green bond
Part of its commitment to promote green finance
Singapore, 19 Jul 2017 - DBS Group Holdings Ltd (“DBSH”) has successfully priced the issue of USD 500 million floating rate green bonds due 2022 (the “Bonds”) under its USD 30 billion Global Medium Term Note Programme (the “Programme”). The Bonds will bear a quarterly coupon of 3-month USD LIBOR + 0.62%. The Bonds are expected to be issued on 25 July 2017.
The issue of the Bonds was well received in the market, allowing the final price guidance to be tightened meaningfully and achieving a very compelling pricing level for a 5-year benchmark deal.
The net proceeds from the issue of the Bonds will be used for the finance and treasury activities of DBSH, including the provision of intercompany loans (or other forms of financing) to DBS Bank Ltd. and its subsidiaries. DBSH and its subsidiaries (the “DBS Group”) will allocate the net proceeds towards the financing of green projects or assets as described under the Eligibility Criteria in the DBS Green Bond Framework, with the first green assets expected to include the DBS Group’s financing of Marina Bay Financial Centre Tower 3, a commercial property in Singapore certified Green Mark Platinum by the Building and Construction Authority (as at the date of this announcement).
Said DBS CFO Chng Sok Hui, “We are pleased to be the first financial institution in Singapore to issue a green bond. The launch of our green bond amplifies our commitment to sustainability and to supporting projects which have a positive impact. It adds another dimension to efforts to green our operations, and lends support to the transition to a low-carbon economy.”
DBSH has mandated DBS Bank Ltd. as Sole Green Structuring Agent and Sole Global Coordinator and Crédit Agricole Corporate and Investment Bank, The Hongkong and Shanghai Banking Corporation Limited, ING Bank N.V., Singapore Branch, Natixis Securities Americas LLC, Société Générale and Wells Fargo Securities, LLC as Joint Lead Managers and Joint Bookrunners and ABN AMRO Securities (USA) LLC as Joint Lead Manager for the issuance of the Bonds. The Bonds have been offered to certain non-U.S. investors outside the United States in reliance on Regulation S under the Securities Act and to “qualified institutional buyers” as defined in Rule 144A under the Securities Act inside the United States.
The Bonds are expected to be rated Aa2 by Moody's Investors Services Inc. and AA- by Fitch Ratings Ltd.
THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO CANADA OR JAPAN, THE UNITED STATES OF AMERICA (THE “U.S.”) OR TO U.S. PERSONS EXCEPT FOR QUALIFIED INSTITUTIONAL BUYERS (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933)
This announcement does not constitute or form part of any offer, solicitation or invitation to sell, issue, purchase or subscribe for securities in the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States or any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act. No public offering of the securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.
A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating organisation. 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.
About DBS
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 "AA-" and "Aa1" credit ratings, is among the highest in the world.
DBS is at the forefront of leveraging digital technology to shape the future of banking, and has been named “World’s Best Digital Bank” by Euromoney. The bank has also been recognised for its leadership in the region, having been named “Asia’s Best Bank” by several publications including The Banker, Global Finance, IFR Asia and Euromoney since 2012. In addition, the bank has been named “Safest Bank in Asia” by Global Finance for eight consecutive years from 2009 to 2016.
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. The bank acknowledges the passion, commitment and can-do spirit in all of our 22,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
The issue of the Bonds was well received in the market, allowing the final price guidance to be tightened meaningfully and achieving a very compelling pricing level for a 5-year benchmark deal.
The net proceeds from the issue of the Bonds will be used for the finance and treasury activities of DBSH, including the provision of intercompany loans (or other forms of financing) to DBS Bank Ltd. and its subsidiaries. DBSH and its subsidiaries (the “DBS Group”) will allocate the net proceeds towards the financing of green projects or assets as described under the Eligibility Criteria in the DBS Green Bond Framework, with the first green assets expected to include the DBS Group’s financing of Marina Bay Financial Centre Tower 3, a commercial property in Singapore certified Green Mark Platinum by the Building and Construction Authority (as at the date of this announcement).
Said DBS CFO Chng Sok Hui, “We are pleased to be the first financial institution in Singapore to issue a green bond. The launch of our green bond amplifies our commitment to sustainability and to supporting projects which have a positive impact. It adds another dimension to efforts to green our operations, and lends support to the transition to a low-carbon economy.”
DBSH has mandated DBS Bank Ltd. as Sole Green Structuring Agent and Sole Global Coordinator and Crédit Agricole Corporate and Investment Bank, The Hongkong and Shanghai Banking Corporation Limited, ING Bank N.V., Singapore Branch, Natixis Securities Americas LLC, Société Générale and Wells Fargo Securities, LLC as Joint Lead Managers and Joint Bookrunners and ABN AMRO Securities (USA) LLC as Joint Lead Manager for the issuance of the Bonds. The Bonds have been offered to certain non-U.S. investors outside the United States in reliance on Regulation S under the Securities Act and to “qualified institutional buyers” as defined in Rule 144A under the Securities Act inside the United States.
The Bonds are expected to be rated Aa2 by Moody's Investors Services Inc. and AA- by Fitch Ratings Ltd.
THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO CANADA OR JAPAN, THE UNITED STATES OF AMERICA (THE “U.S.”) OR TO U.S. PERSONS EXCEPT FOR QUALIFIED INSTITUTIONAL BUYERS (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933)
This announcement does not constitute or form part of any offer, solicitation or invitation to sell, issue, purchase or subscribe for securities in the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States or any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act. No public offering of the securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited.
A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating organisation. 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 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 "AA-" and "Aa1" credit ratings, is among the highest in the world.
DBS is at the forefront of leveraging digital technology to shape the future of banking, and has been named “World’s Best Digital Bank” by Euromoney. The bank has also been recognised for its leadership in the region, having been named “Asia’s Best Bank” by several publications including The Banker, Global Finance, IFR Asia and Euromoney since 2012. In addition, the bank has been named “Safest Bank in Asia” by Global Finance for eight consecutive years from 2009 to 2016.
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. The bank acknowledges the passion, commitment and can-do spirit in all of our 22,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.