DBS BANK SELLS OUT SINGAPORE'S SECOND TRANCHE OF SHORT-TERM ISSUE FOR RETAIL INVESTORS

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Moneyplus proves popular among retail investors

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INNOVATIVE PRODUCT CONTRIBUTES TO DBS' CONTINUING
EFFORTS TO DEEPEN LOCAL DEBT CAPITAL MARKETS

SINGAPORE, JULY 4 - DBS Bank today announced that the second tranche of Moneyplus, valued at S$75 million, has been oversubscribed before the scheduled closing date.

This issue comes on the heels of Moneyplus' successful launch early this June. Of the total offer size of S$75 million, S$25 million was made available to retail investors through the ATM. Moneyplus is DBS' latest investment innovation that gives retail customers an attractive new short-term investment option. It provides potentially higher returns than a fixed deposit account, and is secured by very high quality assets.

Moneyplus is backed by a variety of high quality loans and bonds originally issued by statutory boards, government-linked companies, and foreign corporations rated at least "A" or better by Standard & Poor's. These loans and bonds act as collateral for the Short-Term Notes. Moneyplus is listed on the Singapore Exchange, and its underlying Notes have been rated "A-1" by Standard & Poor's.

As a continuous investment feature that serves the same investment objective of a fixed deposit, this particular Notes issue offered its customers a competitive interest rate of 2.825% per annum with a 3-month maturity, in multiples of S$10,000. 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.

This second Note issue was to remain open from Wednesday, 28 June 2000 at 9.30 a.m. to Tuesday, 4 July 2000 at 12 noon, but closed on Monday morning, 3 July 2000 upon full subscription of the issue.

Available to all DBS/POSBank customers with CDP Securities accounts on a first-come-first-served basis, applications for Moneyplus can be made by way of Electronic Applications through the ATMs of DBS Bank (including those of its POSBank Services Division) or printed application forms on a private placement basis.

Managing Director of Debt Capital Markets, Stephen Finch said, "I am very pleased with the overwhelming success of this second tranche of Moneyplus. Our customers are clearly taking full advantage of the opportunity to participate in this new channel of investment."

"DBS is grateful for the enthusiastic response from our customers, and would like to thank everyone for taking an active interest in this innovative new product. Their support is vital to the success of DBS' pioneering efforts to deepen Singapore's capital markets. This process enlarges the availability of funds for corporations and broadens the investor base for such investments. DBS has pledged to continue to provide such opportunities for the retail investor, and is lining up further issues in the near future."

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