DBS BANK SUCCESSFULLY PRICES
USD1.5 BILLION FLOATING RATE SUBORDINATED NOTES DUE 2017 AND
USD500 MILLION 5.125% SUBORDINATED NOTES DUE 2017
* * *
SINGAPORE, May 11, 2007 - DBS Bank said today it successfully priced
an international offering of USD1.5 billion floating rate subordinated
notes due 2017 ("Series A Notes") and USD500 million 5.125%
subordinated notes due 2017 ("Series B Notes", together with the
Series A Notes, "Notes"). This is the first issue of securities
qualifying as Lower Tier 2 capital by a Singapore bank.
The Notes have a 10-year maturity with a call option and coupon
step-up after the fifth year.
The Notes are expected to qualify as Lower Tier 2 capital of DBS
Bank. The new capital will be used for general corporate purposes,
and to augment DBS Bank's Tier 2 capital.
The Series A Notes bear a coupon of 22 basis points above the benchmark
LIBOR with interest payable quarterly. If the Series A Notes are
not called on the fifth year, the coupon will be stepped up on the
call date to a floating rate equal to 122 basis points over three-month
LIBOR. The Series B Notes bear a fixed coupon of 5.125% with interest
payable semi-annually. If the Series B Notes are not called on the
fifth year, the coupon will be reset to a floating rate and stepped
up to 122 basis points over the three-month LIBOR.
Jeanette Wong, Chief Financial Officer of DBS Bank, said: "We
are delighted with the interest we received from a broad range of
high-quality investors. The demand reflected DBS strong operating
performance and superior asset quality."
The Notes were distributed to institutional investors, 38% to banks,
58% to fund managers and the remainder to the insurance sector and
pension funds, with 27% placed in Asia, 40% placed in Europe and
33% placed in North America.
The Notes have been rated Aa2 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 proposed 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 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 operations in 15 markets. The largest
bank in Singapore as measured by assets, and a leading bank in Hong
Kong, DBS' "AA-" and "Aa1" 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.