DBS Group, the largest bank in Southeast Asia, has successfully raised $2 billion through a multi-tranche U.S. dollar senior bond issuance for general business purposes and financing treasury activities, as revealed in a term sheet disclosed to Reuters on Friday.
The issuance includes two floating-rate notes, securing $1 billion and $500 million with three-year and five-year tenors, respectively, and a three-year fixed-rate note securing $500 million with a coupon rate of 4.403%.
Demand for both floating-rate notes reached $3 billion each, with the five-year tranche garnering significant interest from 179 accounts. Meanwhile, the three-year fixed-rate note attracted interest from 102 accounts, totaling $1.4 billion, according to the term sheet.
Approximately half of the offers came from Asian investors, with regional interest reaching 63% in the five-year floating-rate tranche, particularly driven by asset and fund managers, as well as banks.
Philip Fernandez, the group corporate treasurer at DBS, commented, "The positive momentum of the order book, which was more than three times oversubscribed, is an endorsement by investors of DBS' robust and resilient franchise."
The notes were issued under DBS's $30 billion global medium-term note program.
DBS intends to utilize the raised funds for general purposes, along with financing and treasury activities, such as offering intercompany loans and other forms of financing to DBS Bank Group, as specified in the term sheet.
DBS Bank served as the sole global coordinator, joint book-runner, and lead manager, alongside BNP Paribas, Bank of America, RBC Capital Markets, HSBC, and other institutions.