RETAIL BANKING | Tony Chua, Singapore

DBS issues $1bln 5-year bonds

Sale intended to raise funds to ease high US dollar loan-to-deposit ratio and improve financial standing.

DBS Bank Ltd. sold US$1 billion in five-year bonds on healthy demand Tuesday, marking the first overseas senior note bond by a Singapore bank.

Southeast Asia's largest bank by assets priced debt to yield 100 basis points over five-year U.S. Treasurys, at the tight end of the 100- to 105-basis-point price guidance it offered earlier in the one-day launch, said people familiar with the deal.

The sale is part of DBS's US$10 billion debt program. DBS, Bank of America Merrill Lynch and Barclays Capital are joint bookrunners.

Singapore companies, especially those like DBS that are linked to state investment company Temasek Holdings, have been aggressive in the bond market this year.

Temasek unit PSA International Pte. Ltd. sold US$500 million in 10.5-year bonds last month. Temasek itself tapped the international bond market this year, raising GBP700 million, its first sterling-denominated bonds. The investment fund has previously sold 10- and 30-year U.S. dollar bonds.

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