DBS pricing 5.5-year US dollar benchmark bond offering: Client note

DBS signage at the DBS Marina Regatta dragon boat race on 2 June 2019.DBS signage at the DBS Marina Regatta dragon boat race on 2 June 2019.

Southeast Asia’s largest bank, DBS, is pricing a U.S. dollar-denominated 5.5 year benchmark bond under its global medium term note program, according to a client note seen by Shenton Wire.

The initial price guidance is at the five-year U.S. Treasury note yield, currently around 0.79 percent, plus around 65 basis points, subject to market conditions and demand, the client note said. However, recent bond offerings in Singapore have priced with yields below the initial pricing guidance.

A benchmark size suggests the offering will be at least US$250 million.

The net proceeds are earmarked for DBS’s finance and treasury activities, including provision of intercompany loans or other forms of financing to DBS Bank and its subsidiaries, the note said.

The minimum denomination of the bonds will be US$200,000, the client note said.

The sole global coordinator for the offering is DBS Bank, while the joint lead managers will be DBS Bank, Barclays, BofA Securities and HSBC, the note said, adding the bookrunners are ING and TD Securities.

DBS is rated at Aa2 stable by Moody’s Investors Service and AA-minus by Fitch, the note said.

The offeror will apply to list the bonds on SGX, the note said.

Maturity of the notes will be on 15 March 2027, the client note said.