DBS prices issue of $750m fixed rate subordinated notes

The issuance is part of DBS’ US$15 billion Global Medium Term Note Programme.

DBS said notes will initially bear a fixed coupon of 3.625% per annum with interest payable semi-annually up to 21 September 2017. If the notes are not redeemed on the First Call Date, DBS said 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 U.S. Dollar Swap Rate and 2.229%.

The notes are expected to be issued on 21 March 2012 and are expected to qualify as Lower Tier 2 capital of DBS and be eligible for Basel III transitional treatment, subject to the requirements of the Monetary Authority of Singapore.

DBS has mandated DBS Bank Ltd., Bank of America Merrill Lynch, and Goldman Sachs (Singapore) Pte. as the Joint Lead Managers for the issuance of the notes.