DBS: subordinate to no-one

Singaporean bank achieves super tight pricing on first subordinated debt deal in three years.

DBS returned to the upper tier 2 market yesterday September 23 with a $750 million 15 non-call 10 deal via lead manager Morgan Stanley and joint lead DBS. Pricing came at the very tight end of indicative terms on an issue price of 99.7% and coupon of 5% to yield 5.037% or 105bp over Treasuries.

Bankers calculate the Libor spread to be 61bp over, an incredibly steep 15bp differential relative to the main benchmark provided by UOB. This was said to have been trading at 76bp over Libor at the time of pricing.

However, different banks were quoting a range of asset swap margins yesterday....

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