DBS’ inaugural US$1b covered bonds eagerly snapped up by global banks

62% of its order book came from banks.

DBS Bank’s maiden covered bonds were eagerly snapped up by international investors, with the US$1b issue attracting orders of approximately USD1.37 billion from over 40 investors.

DBS said that banks anchored the order book and accounted for 62% of orders. Orders were received across 16 countries with a high level of representation from Asia at 51%.

This marks DBS’ first issue under its US$10 billion Global Covered Bond Programme established on 16 June 2015.

The covered bonds will bear a fixed coupon of 1.625% per annum payable semi-annually in arrear. This is equal to a spread of 37 basis points over mid-swaps, well below the level for new senior unsecured USD debt issues by bank issuers of similar rating to DBS.