DBS Bank priced the tightest euro benchmark covered bond from Singapore today (Tuesday), a Eu500m seven year covered bond that was priced 1bp through mid-swaps to offer little to no new issue premium.

Following a mandate announcement yesterday afternoon, leads Barclays, JP Morgan, SG and UniCredit launched the Eu500m no-grow deal this morning with guidance of the 3bp over mid-swaps area.

Guidance was later revised to flat/minus 1bp, will price within range, with books approaching Eu900m, including Eu75m joint lead manager interest, before the spread was fixed at minus 1bp.

The deal is the tightest euro benchmark covered bond from Singapore to date, and was deemed to have offered little to no new issue premium, with syndicate bankers citing DBS January 2024s at minus 2.5bp, mid, and 2022 paper of UOB and OCBC at minus 6bp-5bp.

“It’s a great price for DBS and for the Singaporean segment, even in a covered bond market that is going tighter every day,” said a syndicate banker away from the leads.

The new issue is DBS’ second euro benchmark covered bond, following an inaugural Eu750m seven year issue in January.