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.Also Read: Orient Express giant yacht sets sights on tech billionairesIt 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.Also Read: Trump's tariffs aren't saving jobs at Whirlpool's Iowa refrigerator plantDBS said its capital ratios were well above regulatory requirements.
DBS completes $1 billion synthetic securitisation in first for a Singapore bank
Singapore's largest bank, DBS Group, has successfully completed a groundbreaking synthetic securitisation deal involving a $1 billion corporate loan portfolio. This innovative transaction allows investors to share credit risk, enabling DBS to manage its capital more efficiently and free up resources for expanded client financing across the region. The move signals DBS's commitment to strategic growth while maintaining a robust balance sheet.
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