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.


-CNA/wm


View the original article here


Source From Channel News Asia

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