By Susanna Moon
Chicago, Nov. 18 - DBS Bank said it closed its oversubscribed offer of S$500 million liquidation preference of 4.7% non-cumulative, non-voting preference shares (A3/A/A).
The bank said it received applications of more than S$1.8 billion. Retail subscriptions via ATMs and internet banking reached more than S$1.4 billion, and subscriptions for reserve tranches for institutional investors and DBS employees totaled more than S$400 million.
To accommodate the retail demand, the bank said it exercised the option to upsize to S$800 million. Of the total amount, S$550 million was allocated to retail investors.
The preference shares will be listed on the Singapore Exchange starting Tuesday.
DBS said last week that it was offering S$500 million of the preference shares to the public in Singapore and up to S$250 million to institutional and other investors.
The bank was also offering up to S$50 million to directors, management and employees. The combined amount sold to employees and institutional investors could not exceed S$250 million.
The public offering in Singapore was led by Oversea-Chinese Banking Corp. Ltd., United Overseas Bank Ltd. and United Overseas Bank subsidiary Far Eastern Bank Ltd.
The preferreds were sold at par of S$100 and will be callable after 10 years.
The public offering opened on Nov. 11 and closed on Thursday.
The proceeds will be used to redeem some outstanding tier 1 instruments that are callable in 2011 and to support growth initiatives.
DBS Bank is a Singapore-based financial services group.
| Issuer: | DBS Bank Ltd.
|
| Issue: | Preference shares
|
| Amount: | S$800 million
|
| Managers: | Oversea-Chinese Banking Corp. Ltd., United Overseas Bank Ltd., Far Eastern Bank Ltd.
|
| Dividend: | 4.7%
|
| Price: | Par of S$100
|
| Yield: | 4.7%
|
| Call option: | After 10 years
|
| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 18
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A
|
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