DBS Bank has launched the Fixed Income Execution (FIX) Marketplace, a digital platform where bond issuers can directly connect with investors.
In a press release announcing the launch on June 22, DBS says the FIX Marketplace aims to make capital markets access more time and cost-efficient, while also developing the breadth and depth of Asian bond markets at a faster pace.
Besides allowing issuers to directly issue their own bonds into the marketplace, the platform offers a faster bond issuance process, enables investors to subscribe directly to new notes issued on the platform, and fully digitalises and automates issuance-related documentation.
The platform also supports issuers in generating ‘Digital Bond’ ready transactions which can be listed and traded on the DBS Digital Exchange (DDEx).
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Keppel Corporation is the first corporate issuer on the platform through the establishment of a USD$1 billion ($1.34 billion) Euro-Commercial Paper Programme. DBS has been appointed sole arranger and dealer of the programme.
DBS also disclosed that on the investor front, Phillip Securities has been onboarded onto the platform, while legal firm Linklaters advised on the processes to enable digital drawdowns, along with local counsels WongPartnership, Allen & Gledhill and Rajah & Tann who worked with potential issuer clients.
“The time is ripe for traditional ways of bond origination to make way for a more digital approach, to do what has been aspired for so long – by taking the first step towards the creation of an independent platform that allows bond issuers efficient and effective direct access to the market place and bond investors,” says Clifford Lee, global head of fixed income at DBS.
“We are grateful and proud to start this journey with Keppel Corporation as the first issuer onboarded on the platform, Phillip Securities on the investor front, along with Linklaters and other prominent Singapore firms in the provision of legal documentation insights,” he adds.
Shares in DBS closed 14 cents or 0.47% lower at $29.63 on June 21.