DBS prices first SORA-based floating rate notes

The notes have a notional amount of $20m (US$14m).

DBS has priced the first Singapore Overnight Rate Average (SORA)-referenced floating rate notes under its $42.5b (US$30b) Global Medium-Term Note Programme, according to a news release.

The issuance supports the Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee (ABS-SFEMC) roadmap for the development of SORA-based markets.

The notes have a notional amount of $20m (US$14m) and a tenor of one year. It will bear a coupon rate of Compounded Daily SORA + 0.65% per annum, payable quarterly in arrear with Compounded Daily SORA calculated using a five business day look-back observation period.

It will be issued on 14 May and the net proceeds will be used for general business purposes.

SORA is a transaction-based interest rate benchmark underpinned by the SGD overnight interbank funding market and has been published by the Monetary Authority of Singapore since July 2005.