DBS Bank Announces The Launch Of S$505 Million Secured Bond Issue

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Securitisation of 100% of Capital Square Pte Ltd

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Comprises Senior Bonds And Junior Bonds (With Attached Preference Shares)

SINGAPORE, December 2, 2002 - DBS Bank today announced the launch of the S$505 million Secured Bond Issue via asset securitisation, issued in conjunction with the sale of Capital Square Pte Ltd ("CSPL"), which owns Capital Square (the "Property"). DBS is the arranger and manager for the issue.

Queensley Holdings Limited ("Queensley"), a special purpose vehicle, will issue S$505 million bonds together with 808 preference shares (the "Issue") for the purchase of the 100% stake in CSPL. The Property was recently valued by Colliers International Consultancy & Valuation (Singapore) Pte Ltd in November 2002 at S$508,000,000. The tenor of the Bonds is 7 years.

There are two classes of bonds, S$303 million Senior Bonds ("Senior Bonds") and S$202 million Junior Bonds, together with 808 preference shares ("Junior Bonds"). The Junior Bonds rank below the Senior Bonds in terms of principal and interest payments. The Junior Bonds are fully subscribed by CAPITAL PLAZA Holding GmbH & Co. Singapur KG, a special purpose vehicle set up by ERGO Versicherungsgruppe AG to purchase the Junior Bonds.

The Senior Bonds are offered to institutional and sophisticated investors. The broad terms of the Senior Bonds are: -

The Issue is structured with a number of credit enhancements, which makes it superior to a normal straight bond issue. In addition to having the Property as collateral, holders of Senior Bonds also have a security buffer of 40% as they rank ahead of the Junior Bonds. Keppel Land (Tower D) Pte Ltd would also provide an income support pool of up to a maximum amount of S$14 million to Queensley in the event that the financial performance does not meet certain projections. Furthermore, Queensley is required to build up and maintain a bond reserve account to service amounts due in respect of the Senior Bonds.

Capital Square is a comprehensive commercial development, strategically located in Raffles Place. The Property was completed in 1998 and the land on which the Property is situated has a remaining lease of approximately 92 years. The Property is just 5 minutes' walk from Raffles Place MRT and is easily accessible to the major highways that link the Central Business District to the other parts of Singapore. The Property comprises a 16-storey Grade A office building with a seven-level multi-storey carpark (Capital Square One) and two blocks of conservation buildings (Capital Square Two and Capital Square Three). The Property has an outstanding tenant profile which includes major tenants like Citibank N.A., Morgan Stanley Dean Witter Asia Capital Group (Singapore) Pte and Barclays Bank PLC, and is currently nearly 100% occupied.

Mr Eric Ang, Managing Director and Co-Head of DBS Investment Banking Group said, " We are very pleased to lead manage this deal which is the largest office property asset securitisation in Singapore this year. The bonds are backed by good occupancy and stable income from Capital Square, one of Singapore's premium Grade-A office buildings."

"This issue is the fourth major property-related transaction for DBS this year, following the Compass Point securitisation bond issue, the Ascendas Real Estate Investment Trust (A-REIT) and CapitaMall Trust which made the mark as Singapore's first property trust. DBS is the first to pioneer asset securitisation in Singapore and today remains the market leader in this field."

About DBS
DBS Bank is the largest bank in Singapore as measured by assets, with dominant positions in consumer banking, treasury and markets, securities brokerage, Singapore dollar loans, deposits, and equity and debt fund raising. Through its Dao Heng Bank and DBS Kwong On Bank operations, DBS Bank is the fourth largest banking group in Hong Kong. Beyond the anchor markets of Singapore and Hong Kong, DBS Bank serves corporate, institutional and retail customers through its operations in Thailand, The Philippines, and Indonesia. The Bank's credit ratings are amongst the highest in the Asia Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our company website www.dbs.com.