DBS opens new covered market

摘要

DBS bank broke new ground last week with the first covered Kangaroo bond from an Asian issuer, opening up the market for others as the senior secured format gains momentum in the region. The Singapore bank sold A$750m (US$540m) of three-year covered bonds at 77bp over three-month BBSW, from initial guidance of 80bp area. A strong response from investors allowed the size to be increased from an initial A$500m. Previously, issuers from Canada and New Zealand had sold covered bonds in Australian dollars, but Asian issuers only began offering statutory covered bonds last year and had yet to venture beyond the G3 currencies.