DBS Group, Southeast Asia’s largest bank, has successfully raised $2 billion through a multi-tranche U.S. dollar bond issuance aimed at supporting its general business operations and financing treasury activities, according to a term sheet reviewed by Reuters on Friday.
The issuance includes two floating rate notes and one fixed-rate note. The floating rate notes, with three-year and five-year tenors, raised $1 billion and $500 million, respectively. The fixed-rate note, offering a coupon rate of 4.403%, raised $500 million with a three-year maturity.
Investor demand was strong, with both floating rate notes oversubscribed by three times. The five-year tranche, which attracted the most interest, received orders from 179 accounts, while the three-year fixed-rate note garnered $1.4 billion in interest from 102 accounts.
Asian investors accounted for nearly half of the total demand, with the five-year floating rate tranche seeing 63% of its interest from the region. This demand was mainly driven by asset managers, fund managers, and banks.
Philip Fernandez, Group Corporate Treasurer at DBS, highlighted the strong investor interest, stating, “The positive momentum of the order book, which was more than three times oversubscribed, is an endorsement by investors of DBS’ robust and resilient franchise.”
The bonds were issued under DBS’s $30 billion global medium-term note program.
Proceeds from the bond issuance will be used for general purposes, including intercompany loans and other financing activities within the DBS Bank Group, the term sheet confirmed.
DBS Bank served as the sole global coordinator, joint bookrunner, and lead manager for the offering, with BNP Paribas, Bank of America, RBC Capital Markets, HSBC, and others also involved.
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