HONG KONG, July 18 (IFR) - DBS Group Holdings, rated Aa2/AA- (Moody's/Fitch), is marketing five-year US dollar Green bonds at Treasuries plus low 80 basis points area, the first offshore Green bond offering by a Singaporean issuer.
The Singaporean bank is also marketing a five-year floater at the equivalent spread over three-month US dollar Libor.
The 144A/Reg S notes are expected to be rated on par with the issuer.
DBS Group will allocate the net proceeds towards the financing of green projects or assets, with the first green assets expected to include DBS Group’s financing of Singapore's Marina Bay Financial Centre Tower 3. The property has been certified "Green Mark Platinum" by the Building and Construction Authority.
DBS Bank is sole global coordinator and joint bookrunner with Credit Agricole, HSBC, ING, Natixis, Societe Generale and Wells Fargo.
In April, City Developments sold Singapore's first Green bond, a S$100 million ($73 million) two-year note, with proceeds used to repay a loan which financed the upgrading of its Republic Plaza building.
Singapore has been trying to promote Green bond issuance. In March, the Monetary Authority of Singapore announced that it would offer a grant of up to S$100,000 per issue to offset expenses incurred in obtaining an external review of Green bonds, as part of plans to promote sustainability-oriented benchmarks, funds and products. (Reporting by Frances Yoon; Editing by Vincent Baby and Daniel Stanton)