ABN Amro finds liquidity in Singapore dollar bond market

With Basel III around the corner, banks worldwide are looking to shore up their capital. Last night, ABN Amro closed a S$1 billion $822 million tier-2 issue, and proved that there is ample demand for European hybrid paper in the Singapore dollar bond market. The deal attracted a whopping S$17 billion of orders from 170 accounts.

“It was the first public bond deal for ABN Amro in the Sing dollar market, and they achieved cost savings of about 30bp compared to the dollar market for the same structure,” said a source. “There is clearly unfulfilled demand for European bank paper in Singapore dollars.”

The Dutch bank does...