DBS completes $1 billion synthetic securitisation in first for a Singapore bank

DBS Group, Singapore's biggest bank by assets, said on Tuesday it has completed a synthetic securitisation transaction tied to a $1 billion portfolio of corporate loans, the ‌first such ⁠deal ⁠by a Singapore bank.

The deal, also known as a significant risk transfer transaction, allows investors to take on part of the credit risk of ⁠the loan ‌portfolio. DBS keeps and services the loans, while reducing the ⁠regulatory capital it must hold against them.

DBS said the transaction would help it manage capital more efficiently and support more client financing as it expands across the region.


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It said the deal ‌also lays a foundation for the bank to selectively execute ​more such ​transactions ⁠in future.

Philip Fernandez, DBS' group corporate treasurer, said the deal would help the bank keep strong balance sheet discipline while pursuing growth opportunities.

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DBS said its capital ratios were well above regulatory requirements.