SINGAPORE — Singapore’s DBS Bank has priced a $2 billion three-year US dollar covered bond at par on Monday, a term sheet seen by Reuters late Monday showed.
The three-year bond carries a fixed coupon of 4.486 percent and will mature on June 29, 2029, the term sheet showed.
The deal was priced at 42 basis points over SOFR mid-swaps, or the secured overnight financing rate, a key US dollar interest rate benchmark.
Orders for the bond had topped $2.6 billion earlier on Monday, according to a previous term sheet update.
“DBS has been leading the development of Singapore’s covered bond market for over a decade, since issuing the country’s first covered bond in 2015,” said Philip Fernandez, the bank’s group corporate treasurer, in an emailed statement on Tuesday.
“This latest issuance, under DBS’ Global Covered Bond Program, reflects the bank’s ongoing commitment to foster greater participation in this asset class while lowering our overall funding cost,” Fernandez said.
The notes are expected to settle on June 29, 2026.
A covered bond is debt backed by a pool of assets, in this case Singapore residential mortgage loans. The bond is guaranteed by Bayfront Covered Bonds Pte Ltd.
The notes are expected to be rated Aaa by Moody’s and AAA by Fitch.
DBS Bank, BMO Capital Markets, HSBC, RBC Capital Markets, Standard Chartered Bank and TD Securities are the joint lead managers.
