Partner of choice
DBS Bank retained its title of best Singapore Bond House in 2023, bringing variety to the Singapore dollar market despite a challenging backdrop.
It led many of the year’s benchmark transactions, including the Government of Singapore’s 50-year green bond reopening, giving it an annual issuance volume of S$3.3bn (US$2.5bn) for a market share of 25.1%. It also led the most Singapore dollar deals for foreign issuers, with a share of 24.4%, and continued to play a key role in global currency offerings.
“We strive to be the Asian bank in global transactions,” said Clifford Lee, head of fixed income. “We feel that our strategic positioning in the market [is] as a gateway between Asia and the rest of the world.”
Local and foreign bank capital deals provided an important part of Singapore dollar bond supply during the year, despite global concerns about subordinated notes following the Credit Suisse writedown in March. DBS led the Lloyds Banking Group’s S$500m 5.25% 10-year non-call 5 Tier 2 callable bond, the bank’s debut capital trade in the Singapore dollar market and the first foreign bank capital deal following the Credit Suisse debacle.
DBS was also joint bookrunner on a S$550m perpetual non-call 5.5-year for Hong Kong-based AIA Group, which was the insurer’s first public Singapore dollar deal. A strong order book, peaking at S$1.1bn, allowed pricing to tighten to 5.1% from initial guidance of 5.35%.
Such deals gave foreign financial issuers a cost saving over their usual funding currencies, while providing welcome variety to Singaporean investors.
Besides financial institutions, it also brought notable corporate deals like a subordinated perpetual issue for Singapore Technologies Telemedia and a green bond for Sembcorp Industries.
DBS deepened its foothold in the rest of Asia, acting as the only foreign joint lead underwriter for Asian Infrastructure Investment Bank’s Rmb1.5bn (US$209m) Panda bond. DBS used its China arm to participate in other onshore deals as well.
It continued to win roles on landmark G3 deals around the region, such as the Republic of Indonesia’s US$3bn triple-tranche SEC-registered fixed rate notes – the first US dollar issue out of ASEAN in 2023 – and Khazanah Nasional’s US$1.5bn two-part sukuk and conventional bond, the Malaysian sovereign wealth fund’s first rated offering.
The bank continued to support the ESG agenda of its clients this year, working on deals like CapitaLand Integrated Commercial Trust’s debut Singapore dollar green issuance where it was the sole green structuring adviser. It provided clients with value-added services such as sustainable finance framework and credit rating advisory, making it the all-round bank of choice for repeat and first-time issuers in South-East Asia.
To see the digital version of this report, please click here
To purchase printed copies or a PDF, please email shahid.hamid@lseg.com