Singapore's DBS Bank to offer three-year dollar covered bond, term sheet shows

Sinagpore's DBS Bank plans to sell a three-year US dollar benchmark covered bond, according to a term sheet seen by Reuters on Monday.

A US dollar benchmark bond is usually at least US$500 million and is meant to be easy to trade. The term sheet did not give the planned size.

DBS did not immediately respond to an email query on Monday.

Here's more details from the sheet:

• The bond is being offered at 42 basis points over SOFR mid-swaps. SOFR, or the secured overnight financing rate, is a key US dollar interest rate benchmark.
• The notes will mature on June 29, 2029, and 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 (0005), RBC Capital Markets, Standard Chartered Bank and TD Securities are the joint lead managers.

Reuters

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