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Singapore shows appetite for Basel III-compliant bank debt 

August 11, 2015

John Weavers, Kit Yin Boey, Reuters

Singapore cemented its viability as a funding centre for stringent Basel III-compliant subordinated debt last week after Westpac garnered competitive pricing for a S$325m (US$235.5m) 4% Tier 2 issue amid tough global market conditions. The Australian institution was drawn to the relatively sheltered local currency market, which has repeatedly absorbed bank capital deals from foreign banks in recent months.

"This clearly shows that the Singapore dollar market remains open and opportunistic for bank capital product issuances for a select group of high-quality bank issuers," said Samuel Chan, executive director, bond syndicate at Standard Chartered.

Westpac is the third foreign bank this year to tap the city-state's deep appetite for Basel III-compliant bank capital. It follows in the wake of its Australian peer ANZ, which sold a benchmark S$500m 3.75% 12-year non-call seven Tier 2 issue in March, and French bank BPCE, which issued a S$225m 4.45% Basel III-compliant 10NC5 T2 in June.

Read more: Reuters

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