Singapore's policy quirk lures bank funding rush

Tourists have drinks at a hotel rooftop bar as clouds gather over the central business district in Singapore* Private banks doing most of the buyingSINGAPORE, July 12 - Global banks are rushing to sell bonds in Singapore, where unique monetary settings have opened a favourable borrowing window that puts the city-state's debt markets on course for the biggest year of bank-capital raising in more than a decade.

Almost S$12 billion has been raised in Singapore's debt markets from Jan. 1 to July 6, the largest for the period since 2019, according to Refinitiv data, with June the biggest month for issuance by value since Sept. 2021. Private banks have led solid investor demand. UOB, the bookrunner for a S$900 million Tier-2 note for HSBC in June , said it was oversubscribed - with private banks the biggest buyers - and that 5.25% was a competitive price."The Singapore dollar trade was priced about 20 to 25 basis points tighter than what they would have achieved in the U.S. dollar market," said Carolyn Tan, UOB's head of debt capital markets for bonds. HSBC had no comment.

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