DBS Bank Ltd. has on 16 January 2017 successfully priced the issue of EUR750,000,000 fixed rate covered bonds due 2024 (the “Covered Bonds”) under DBS Bank Ltd.’s USD10 billion Global Covered Bond Programme (the “Programme”) established on 16 June 2015 and updated on 14 April 2016.
The Covered Bonds will bear a fixed coupon of 0.375 per cent. per annum payable annually in arrear and will be guaranteed as to payments of interest and principal by Bayfront Covered Bonds Pte. Ltd. (“BCB”). The guarantee (the “Covered Bond Guarantee”) is secured by a portfolio consisting 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 DBS Bank Ltd., Deutsche Bank AG, Frankfurt, J.P. Morgan Securities plc, Société Générale and UniCredit Bank AG to act as Joint Lead Managers and Joint Bookrunners and DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, NATIXIS and Norddeutsche Landesbank - Girozentrale – to act as Co-Managers for the issue of the Covered Bonds. The Covered Bonds have been offered to certain non-U.S. investors outside the United States.
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 23 January 2017. 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 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 is not an offer of securities for sale in the United States. 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 any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws of the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements. There will be no public offering of the securities referred to herein in the United States. 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.
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 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.