DBS completes first international bond issue in Singapore

The $180m bond issue was oversubscribed.

DBS Bank and the Credit Guarantee and Investment Facility (CGIF) revealed on Friday that they have successfully completed the first public CGIF-guaranteed bond in the SGD bond market.

With CGIF’s guarantee, Protelindo Finance B.V issued a $180 million, 10-year bond in the SGD bond markets. Its parent company, PT Profesional Telekomunikasi Indonesia, is the largest independent owner and operator of telecommunications towers in Indonesia.

Leveraging CGIF’s financial strength and AA rating, the issue attracted strong interest from a broad spectrum of high quality institutional investors, with an order book of close to $200 million.

Investors in Singapore were allocated 91% of the issue. Asset managers, insurance companies and sovereign wealth funds were allocated 97%, and the remaining 3% allocated to private banks and banks.

The transaction was also the largest with the longest tenor since CGIF was established in 2010. DBS was the Sole Financial Advisor.

“We are very pleased to be able to bring this transaction to the market as this marks another significant milestone in the development and opening up of local currency bond markets in the region. The fact that the issuer’s full bond issuance needs was met in the SGD bond market also reflects the strength and depth of the SGD bond markets,” said Clifford Lee, Head of Fixed Income, DBS Bank.