DBS BANK LAUNCHES SINGAPORE'S FIRST SHORT-TERM NOTE ISSUE FOR RETAIL INVESTORS

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New high quality, short-term Notes offer retail investors an interest rate higher than fixed deposit rates for same maturity

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DBS' LATEST INNOVATIVE INVESTMENT OFFERING SECURED BY HIGH QUALITY LOANS AND BONDS WITH "A-1" RATING

SINGAPORE, 31 MAY 2000 - DBS Bank said today it will launch Singapore's first short-term interest bearing Note issue for retail investors on Friday, 2 June 2000.

Called Moneyplus, this latest investment innovation from DBS will give retail customers an attractive new short-term investment option which provides potentially higher returns than a fixed deposit account, and is secured by very high quality assets.

DBS officials said that the first issue of Moneyplus will offer its customers an interest rate of 3.00%, which is higher than fixed deposits of the same tenure for amounts below S$50,000, and is competitive for larger amounts.

Moneyplus is backed by high quality financial obligations (loans and bonds) of statutory-boards, government-linked companies, and foreign corporations rated "A" or better. These loans and bonds will be used as collateral for the Short-Term Notes.

The Notes underlying this very high quality security have been rated "A-1" by leading rating agency, Standard & Poor's, and is listed on the Singapore Exchange.

With the introduction of Moneyplus, the retail customer will have another alternative to fixed deposits and an opportunity to diversify his investment portfolio. Elaborating on this, DBS Bank's Managing Director of Debt Capital Markets, Stephen Finch said, "This issue represents a breakthrough for Singapore's debt capital market for several reasons. Firstly, it gives the retail customer an opportunity to participate in a new channel of investment. Moneyplus offers an attractive alternative to short-term fixed deposits currently available on the market. Secondly, DBS Bank is opening a new source of funds for capital raising, and in turn adds depth to the Singapore capital market."

"Through the launch, DBS Bank is pioneering the development of the retail market for such asset-backed short-term Note issue, and in the process, enlarging the availability of funds for corporations and broadening the investor base for such investments. This is the first such deal in Singapore and depending on the response, we plan to provide more such opportunities for the retail investor." Finch said.

Commenting on the issue, Standard & Poor's Director for Structured Finance Ratings, Diane Lam said, "This programme is the first rated Asset-Backed Note Issue originating out of Singapore, and the first Singapore securitization deal to be rated by Standard & Poor's. As such, the deal represents an important step forward in opening the Singapore market to rated securitization transactions.

"DBS Bank has led the development of structured note programmes in Singapore with several landmark transactions involving commercial properties. Once again, through this programme, DBS Bank has deepened the debt capital markets, and has created an innovative product for the Singapore investors." Added Lam.

Moneyplus will be offered to the retail market in multiples of S$10,000. The maturity for the first series will be three months with an interest rate of 3.00%. Moneyplus has a continuous investment feature that serves the same investment objective of a fixed deposit.

The retail customer may choose to continue to invest in the next series of Moneyplus or opt for redemption at the end of the maturity period.

The Note issue will be on offer from Friday, 2 June 2000 at 9.30 a.m. and closes on Tuesday, 6 June 2000 at 12 noon or upon full subscription of this issue, whichever is earlier.

It will be available to all DBS/POSBank customers with CDP Securities accounts on a first-come-first serve basis. Applications can be made at over 900 DBS and POSBank ATMs island-wide. Applications for Moneyplus can also be made by way of printed application forms on a private placement basis. Customers can call 533 9688 (between 8.30 a.m. - 6.00 p.m., Monday to Friday) for more information.

Details of the Note Issue are found in the Information Memorandum, which are available at all DBS and POSBank branches. The interest rate will be reported daily in the "Bonds & Warrants" section in the newspapers under Singa Secured Assets Limited. Singa Secured Assets Limited is a special purpose company set up with the sole purpose to issue such Notes and to purchase the loans and bonds used as collateral for such Notes. Moneyplus are Notes of Singa Secured Assets Limited, and will be referred to as such in all statements and correspondence.

DBS Bank has been actively expanding its operations in the domestic and international debt capital market. It has a dedicated debt capital market team that had pioneered several innovative product offerings for the retail investor. It was the first to introduce Singapore's first public offering of bonds in July 1997 and has dominated the local market with several innovative property asset securitization transactions.