DBS diversifies with debut euro covered bond

Singapore's largest bank, DBS Group, sold its first-ever euro covered bond on Tuesday morning    a sign of its desire to develop momentum for this relatively new asset class in Asia.

The Reg S sale represents the lender's third foray into the covered bond market after it raised $1 billion from a US dollar covered bond in July 2015 and A$750 million $565 million from an Aussie dollar deal in May last year. It is just the second euro covered bond from a Singapore issuer, after UOB last year sold Asia's first covered bond in euros.

Funding diversification was the key objective for Singapore’s largest lender,...