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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published June 25, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>DBS launches US$10b debt issue scheme
Net proceeds is for general business and not acquisitions, unlike UOB's version
By SIOW LI SEN
DBS Bank has set up a US$10 billion debt programme to issue senior debt securities. The net proceeds from the issue is for general business purposes, the bank said yesterday.
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</TD></TR><TR><TD bgColor=#fffff1><TABLE border=0 cellSpacing=0 cellPadding=0 width=124 align=center><TBODY><TR><TD vAlign=top>'The programme increases DBS's financial flexibility, and allows the bank to shorten the time to market of any new senior debt issuances from months to weeks.'
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>DBS is the second bank this month to launch a debt issuance programme which gives the bank flexibility and shorter time to market when it needs additional funding.
United Overseas Bank (UOB) had earlier this month announced a S$5 billion medium note programme, prompting analysts to expect other banks to follow suit.
The aim of the programme is to allow DBS to issue senior debt, outside of the US, in various currencies and maturities, from time to time, said Edna Koh, DBS spokeswoman.
'Proceeds will be used for general business purposes, such as supporting the growth of our loan book,' she said.
Last month, at its first-quarter results briefing, DBS said that loans grew 3 per cent from the previous quarter and that it was gaining market share in housing and corporate loans.
Home loans in Singapore rose 6 per cent while business loans grew 3 per cent.
Chief executive Piyush Gupta said then that the bank expected double-digit loans growth for the full year.
Ms Koh said that there were no immediate plans to issue debt under the programme when asked for a timetable on issuance.
'However, the programme increases DBS's financial flexibility, and allows the bank to shorten the time to market of any new senior debt issuances from months to weeks,' she said.
'With the programme in place, DBS will also be able to diversify our funding sources.'
The proceeds from DBS's senior debt programme cannot be used for acquisitions.
This makes its debt issuance facility slightly different from that of UOB's S$5 billion euro medium-term note programme.
Under that programme, UOB said, it may issue senior or subordinated debt securities in Singapore dollars or other currencies in various amounts, when needed.
Subordinated debt can be counted as part of the bank's capital and may be used for acquisitions, leading some analysts to speculate on UOB's move.
'The programme gives UOB the flexibility to draw down the funds when it likes,' said Pauline Lee, a banking analyst at Kim Eng Securities.
'It is in line with management's strategy to be more aggressive in lending. And I don't rule out the possibility of mergers and acquisitions.'
DBS is sole arranger of its programme.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>DBS launches US$10b debt issue scheme
Net proceeds is for general business and not acquisitions, unlike UOB's version
By SIOW LI SEN
DBS Bank has set up a US$10 billion debt programme to issue senior debt securities. The net proceeds from the issue is for general business purposes, the bank said yesterday.
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
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- DBS spokeswoman Edna Koh
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United Overseas Bank (UOB) had earlier this month announced a S$5 billion medium note programme, prompting analysts to expect other banks to follow suit.
The aim of the programme is to allow DBS to issue senior debt, outside of the US, in various currencies and maturities, from time to time, said Edna Koh, DBS spokeswoman.
'Proceeds will be used for general business purposes, such as supporting the growth of our loan book,' she said.
Last month, at its first-quarter results briefing, DBS said that loans grew 3 per cent from the previous quarter and that it was gaining market share in housing and corporate loans.
Home loans in Singapore rose 6 per cent while business loans grew 3 per cent.
Chief executive Piyush Gupta said then that the bank expected double-digit loans growth for the full year.
Ms Koh said that there were no immediate plans to issue debt under the programme when asked for a timetable on issuance.
'However, the programme increases DBS's financial flexibility, and allows the bank to shorten the time to market of any new senior debt issuances from months to weeks,' she said.
'With the programme in place, DBS will also be able to diversify our funding sources.'
The proceeds from DBS's senior debt programme cannot be used for acquisitions.
This makes its debt issuance facility slightly different from that of UOB's S$5 billion euro medium-term note programme.
Under that programme, UOB said, it may issue senior or subordinated debt securities in Singapore dollars or other currencies in various amounts, when needed.
Subordinated debt can be counted as part of the bank's capital and may be used for acquisitions, leading some analysts to speculate on UOB's move.
'The programme gives UOB the flexibility to draw down the funds when it likes,' said Pauline Lee, a banking analyst at Kim Eng Securities.
'It is in line with management's strategy to be more aggressive in lending. And I don't rule out the possibility of mergers and acquisitions.'
DBS is sole arranger of its programme.
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