DBS to increase tier 1 capital with hybrid equity issue

Bank capital securities are capturing the attention of Asia''s higher rated banks, with DBS, Maybank and OCBC all preparing to bring deals over the next couple of months.

By Jackie Horne

February 06, 2001

In what is being viewed as the precursor to a major acquisition, DBS is planning to launch the first non-cumulative tier 1 perpetual issue by an Asian bank. While Siam Commercial Bank has previously recapitalized itself using tier 1 capital in the form of a preferred shares convertible into common shares and warrants, DBS's prospective transaction will rank as a hybrid of debt and equity.

The Aa2A rated credit has mandated its house banks Goldman Sachs and Morgan Stanley Dean Witter to lead a $500 million perpetual offering which is thought likely to have a 10-year step up structure. It is also believed that the bank might combine...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222