DBS has become the first bank to sell a covered
bond under Singapore’s Covered Bond Act, despite a
lack of clarity over how to create or define the product under
the new rules.
The Monetary Authority of
Singapore (MAS) first issued a consultation paper on rules for covered bonds in
Singapore in March 2012. However it took more than three years
for the first to come to market, with DBS establishing its first domestic covered bond
programme on June 16 of this year.
The $10 billion programme is yet another step
forward for the product in Asia; Korea’s Kookmin
Bank also sold the first legislative covered bond from Korea in the
Andrew Vickery, partner at Linklaters in London, believes
there are key differences between the two regimes:...