DBS and OCBC return to sub debt sector

DBS launches international offering while OCBC prepares domestic issue.

DBS returned to the international subordinated debt market for the first time since May 2001 yesterday September 22 with the launch of a $750 million issue via Morgan Stanley. The upper tier 2 issue has a 15-year non call 10 structure and is expected to price New York time later today.

Local bankers add that OCBC is also preparing a S$500 million $296 million transaction, which should be launched within the next couple of weeks via Deutsche Bank and JPMorgan. Together the two issues will bring total subordinated debt issuance from Singapore to $7.7 billion over the five years since DBS opened the sector in August 1999.

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