Singapore bank DBS raises $1.5 billion in two US dollar bond tranches-term sheet
© Reuters. FILE PHOTO: A logo of DBS is pictured outside an office in Singapore January 5, 2016. REUTERS/Edgar Su/File Photo
By Scott Murdoch and Yantoultra Ngui
SYDNEY (Reuters) – Singapore’s DBS Group (OTC:) has raised $1.5 bln in two U.S. dollar bond tranches, according to a term sheet reviewed by Reuters.
The bank issued a two-year fixed rate bond that raised $750 million and a two-year floating rate note that raised the same amount, the term sheet said.
The coupon on the fixed rate note was set at 5.479% while the floating rate note was priced at the Secured Overnight Financing Rate (SOFR) plus 61 basis points.
DBS did not comment on the deal but confirmed the transaction in a term sheet sent to Reuters.
Investors subscribed for more than $2.65 billion of the two- year fixed rate bond, the term sheet showed. The floating rate note attracted over $2 billion in orders from investors.
U.S. and Asia-based investors bought nearly 90% of the fixed bond and accounted for 98% of the floating note, the term sheet showed.
DBS has flagged that the proceeds from the bonds would be used for its finance and treasury activities.