Singapore-based DBS Group Holdings' (SGX:D05) subsidiary DBS Bank is planning to sell a three-year US dollar benchmark covered bond, which has a maturity date of June 29, 2029, Reuters reported Monday, citing a term sheet.

The bond is expected to be settled on June 29, 2026, the report said.

The bonds will be offered at a spread of 42 basis points over secured overnight financing rate (SOFR) mid-swaps, backed by a pool of Singapore residential mortgage loans, and guaranteed by Bayfront covered bonds.

The notes are expected to receive ratings of Aaa from Moody's and AAA from Fitch Ratings. Joint lead managers for the offering include BMO Capital Markets, HSBC (HKG:0005), RBC Capital Markets, Standard Chartered PLC (HKG:2888) subsidiary Standard Chartered Bank, and TD Securities.

DBS Bank did not immediately reply to MT Newswires' request for comment.

Shares of DBS Group Holdings rose nearly 1% in recent trade, while those of Standard Chartered PLC added over 1%.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)