DBS announced that real estate player GLP has self-executed its maiden $100 million six-month commercial paper issue on the bank’s FIX Marketplace.
This represents the largest commercial paper issuance that has been executed on the platform to date.
GLP, a global investment manager and business builder in logistics, data infrastructure, renewable energy and related technologies, is rated BBB- by Standard & Poor's and BBB by Fitch Ratings.
The $100 million six-month commercial paper issue saw strong reception comprising a diversified investor base, with some orders carried out on FIX Marketplace.
“This paves the way for more like-minded issuers to adopt digital means to issue commercial papers, increasing the supply of high-quality papers and providing investors with a broader array of financial instruments to invest in,” says Clifford Lee, global head of fixed income at DBS.
“The democratisation of capital markets enabled by technology will become increasingly relevant in today’s digital era, and we envision digital ways of debt issuance to drive the continued growth and development of Asia’s commercial paper market,” he adds.
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The commercial paper offers investors interest of 1.40% per annum and will be used by GLP for general corporate and working capital purposes.
This $100 million is part of GLP’s newly-established US$1 billion commercial paper programme, which DBS has been appointed the sole arranger and dealer for.
The programme is also fully digitalised to provide greater convenience to GLP which is now able to directly engage with investors on FIX Marketplace, who in turn are able to subscribe for issuances through the digital platform.
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“This unique platform represents a big step towards digitalisation, democratisation and direct access to bond investments and we plan to continue exploring the issuance of USD commercial papers on the platform as part of further diversifying our funding sources to support our long-term growth objectives,” says GLP’s global treasurer Edwin Tey.
Since the FIX Marketplace was launched last June, close to $7 billion of issuances denominated in US dollar, Singdollar and Hong Kong dollar have been executed on this platform.
