DBS' US$750m perpetual securities priced at 3.6 per cent

Strong interest raised order book to nearly US$6.5b.

Seeking to support the finance and treasury activities of DBS including the provision of intercompany loans, the bank has successfully priced its first US$-denominated Basel III compliant additional tier 1 capital issuance of US$750 million at 3.6 per cent. The issue attracted strong interest being 8.7 times subscribed with an order book of close to US$6.5 billion.

According to DBS, the perpetual capital securities are first callable in 2021 under its US$30 billion global medium term note programme.

“The securities will confer a right to receive distribution at an initial rate of 3.6 per cent per annum. The distribution rate will then be reset on 7 September 2021 and every five years thereafter at the reset distribution rate equal to the then prevailing 5-year U.S. Dollar Swap Rate plus 2.39 per cent,” DBS said.

DBS has the sole discretion to cancel any distribution on the securities with any unpaid distributions being non-cumulative. Securities may be redeemed at the option of DBS in whole but not in part on 7 September 2021.

The whole issuance is subject to the requirements of the Monetary Authority of Singapore, DBS said.