Thursday, March 15, 2012

DBS issues US$750m of fixed rate subordinate notes

SINGAPORE: DBS Bank announced on Thursday that it has priced the issue of its US$750 million fixed rate subordinated notes due September 21, 2022.

The notes have a fixed coupon of 3.625% per annum and is callable after five-and-half-years on September 21, 2017.

DBS says if the notes are not redeemed on the first call date, the interest rate from that date will be reset at a fixed rate per annum equal to the sum of the then-prevailing five-year US Dollar Swap Rate and 2.229%.

The notes are expected to be issued on March 21, 2012 and they are expected to qualify as Lower Tier 2 capital of the bank and be eligible for Basel III transitional treatment, subject to the requirements of the Monetary Authority of Singapore.


View the original article here

Source From Channel News Asia

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