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SINGAPORE: DBS Bank says it will sell non-convertible hybrid Tier 1 securities in the form of preference shares to supplement its Tier 1 regulatory capital base.
The bank, in a filing with the Singapore Exchange, did not disclose the size of the offering. But reports have estimated the preference shares could be worth between S$500 million and S$750 million.
DBS said it is taking advantage of favourable market conditions to issue the hybrid Tier 1 securities.
Tier 1 capital is a financial institution's most secure resources, which include its earnings and funds raised from selling ordinary shares as well as subordinated debt.
DBS said the proceeds will be used to strengthen its capital position and support its regional expansion.
As of March 31, the lender's capital adequacy ratio stood at 13.4 percent, while its Tier 1 capital was 9.2 percent, well above the central bank's requirement of 6 percent.
DBS said further details will be released when the process is completed. - CNA/ir
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