SECURITISATION OF 6 BATTERY ROAD

S$878 MILLION FIXED RATE SECURED BONDS DUE 2009 WITH 87,800 REDEEMABLE PREFERENCE SHARES ISSUED BY CLOVER HOLDINGS LIMITED

DBS Bank is pleased to announce that the entire issue of $878 million Clover bonds have been fully taken up at 12 noon today when applications closed. The largest single S$ issue to date, the issue was launched in conjunction with the securitisation of 6 Battery Road.

Out of the Senior Bonds of $550 million, DBS Bank offered $50million bonds to retail investors through a Bond IPO. Within 30 hours, the entire $50 million was fully taken up. To satisfy the overwhelming retail demand, DBS Bank increased the retail tranche by another $24.5 million by clawing back additional bonds from the placement tranche. A total of 3,000 applications were received for the retail tranche of $74.5 million Senior Bonds.

Mr Eric Ang, Managing Director and Head, Capital Markets said, " We are very encouraged by the response from the retail investors. A year ago, the retail market for bonds was virtually not in existence. We are very pleased that there is now strong retail interest especially for credit enhanced bonds which are excellent alternatives to fixed deposits.

This is a landmark issue for both Singapore and DBS Bank. It is the largest single S$ and largest bond IPO. In spite of its size, response from both institutional and retail investors was overwhelming. Even the size of the retail tranche had to be increased from $50 million to $74.5 million. DBS Bank will continue to make available a wider range of investment products and play an active role in the development of the bond market."