SG CIB leverages its expertise in covered bonds to support the first offering from Singapore

Societe Generale Corporate & Investment Banking (SG CIB) acted as one of the Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners on the USD 1 billion 3-year debut covered bond for DBS Bank in July 2015. The Reg S/144A deal was rated Aaa by Moody's and AAA by Fitch, and priced at 99.948% with a coupon of 1.625% per annum - equivalent to a spread of 37bp over mid-swaps.

DBS is the largest banking group in Southeast Asia by assets, and is listed and headquartered in Singapore. The transaction was guaranteed by Bayfront Covered Bonds Pte Limited, and represented the first issuance under DBS Bank’s US$10 billion global covered bond program that was established in June 2015. DBS received the European Covered Bond Council (ECBC) Covered Label, the first time that the Covered Bond Label Foundation has granted this label to an issuer outside of Europe.

This landmark transaction is the inaugural covered bond issue from Singapore, following the completion of amendments to the jurisdiction’s covered bond framework on 4 June 2015. DBS is also the first issuer from Southeast Asia to sell covered bonds in the offshore market.

SG CIB has a strong and established track record in covered bonds, and was able to deploy its technical expertise and its global origination & distribution footprint to ensure a successful outcome for DBS. “We are very pleased with this transaction – DBS and Singapore’s first covered bond”, said Hong Nam Yeoh, Head of Wholesale Funding at DBS Bank. “With the support of Societe Generale’s covered bond platform, we were able to raise funding at an attractive cost, open a new market and diversify our investor base further”, he added.