DBS BANK SUCCESSFULLY PRICES
S$500,000,000 SUBORDINATED NOTES
SINGAPORE, 4 July 2006 - DBS Bank said today it successfully
priced an offering of S$500 million subordinated notes due 2021.
The Singapore dollar denominated subordinated notes
have a 15-year maturity with a call option and coupon step-up after
the tenth year.
The subordinated notes are expected to qualify as Upper
Tier 2 capital of DBS Bank. The new capital will be used for general
corporate purposes, including the replacement of existing Tier 2 subordinated
notes which are amortising. The subordinated notes bear a coupon of
4.47%. If the subordinated notes are not called on the tenth year,
the coupon will be stepped up on the call date to a floating rate
equal to six month S$ swap offer rate plus 1.58%.
Jeanette Wong, Chief Financial Officer of DBS Bank,
said: “Following our earlier US$900 million subordinated notes
offering on June 9, we continued to receive strong reverse enquiries
from investors attracted to DBS as a highly rated Asian bank but who
wanted a S$ issue. This S$ subordinated notes offering allows us to
tap market demand to supplement our US$ transaction.”
The subordinated notes were distributed to predominantly
Singapore-based institutional investors.
The subordinated notes have been rated Aa3 by Moody’s Investors
Service, A by Standard & Poor’s Ratings Group and A+ by
Fitch Ratings Ltd.
The information contained herein does not constitute
an offer to sell or a solicitation of an offer to buy securities in
the United States. The offering described herein will not be registered
under the U.S Securities Act of 1933 or with any securities regulatory
authority of any state or other jurisdiction in the United States
and the securities described therein may not be offered or sold, directly
or indirectly, into the United States unless the securities are so
registered or an exemption from the registration requirements is available.
About DBS
Headquartered in Singapore, DBS is one of the largest financial services
groups in Asia with almost five million customers and operations in
15 markets. The largest bank in Singapore and the fifth largest banking
group in Hong Kong as measured by assets, DBS’ “AA-“
and “Aa2” credit ratings are among the highest in the
Asia-Pacific region. DBS has leading positions in consumer banking,
treasury and markets, asset management, securities brokerage, equity
and debt fund raising. Beyond the anchor markets of Singapore and
Hong Kong, DBS serves corporate, institutional and retail customers
through its operations in China, India, Indonesia, Malaysia, Thailand
and The Philippines. More information about DBS Group Holdings and
DBS Bank can be obtained from our website www.dbs.com