DBS China unit to raise US$295mil from bond sale, term sheet shows


A customer walks past automated teller machines (ATM) at a DBS Group Holdings Ltd. bank branch in Singapore, on Feb 17, 2021. —Photographer: Lauryn Ishak/Bloomberg

SINGAPORE: DBS Bank (China) Ltd, the mainland China unit of Singapore's DBS Group, plans to issue 2 billion yuan ($295 million) of onshore Tier 2 capital bonds, according to a term sheet on Tuesday.

* The bank will open bookbuilding on July 7 and settle the deal on July 9, the term sheet showed. Bookbuilding is when investors place orders before final pricing is set.

* The bonds will mature in 10 years, but DBS China can repay them after five years. Tier 2 bonds are bank debt that can absorb losses if a lender gets into financial difficulty.

* China Chengxin International Credit Rating rated DBS China AAA and the bonds AA+, the term sheet showed.

* The bonds will be eligible for Bond Connect, which allows offshore investors to trade in China's bond market.

* The price range is yet to be announced. - Reuters

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