DBS Bank taps into growing Asian economy
(26 April 2010 – Asia) DBS Bank, Southeast Asia’s largest bank, has announced that they have established a dedicated project finance team for its corporate and sovereign customers, as a fast-developing Asia invests to build up its infrastructure.
Project finance is not new to DBS. As early as 2003, DBS was sole arranger and underwriter for Singapore’s first desalination plant, a project undertaken by Hyflux Ltd. Since then, DBS has extended its reach beyond Singapore and into the region.
Across Asia, DBS has been involved as Mandated Lead Arranger for over US$2.5 billion (A$2.7 billion) in project finance transactions in the last two years. This placed DBS consistently among the top 15 Mandated Lead Arrangers in the Asia Pacific (ex-Australasia) in 2008 and 2009.
While DBS has been an active participant in the project finance space across various industries, the bank is now setting up a dedicated team to further increase focus on the business and to better service customers amid growing demand for project financing in Asia.
DBS said that with economic development in Asia, there will be rapid growth in infrastructure and strong demand for energy/ resources in many of DBS’ key growth markets, including China, India and Indonesia.
According to The Asian Development Bank, it is estimated that infrastructure investment in Asia will be US$750 billion per year from 2010-2020. In particular, India and Indonesia are projected to make significant investments over the next few years to increase their power generation capacity so as to meet domestic consumption needs.
The team’s head, Lim Wee Seng, managing director of Project Finance, at DBS said that with the growing demand for infrastructure, energy and natural resource flows across Asia, companies are increasingly looking to invest in Asia’s growth through the development of large scale projects.
The bank recognises the significant opportunities arising from these developments and believes this potential would be better captured by a dedicated PF team, due to the capital and time-intensive nature of arranging and executing typically long-tenure PF deals. As an Asian bank, DBS believes its deep understanding of this region, regional connectivity and longstanding involvement in the project finance space makes us strong partners for clients as they expand in Asia, Mr Seng added.
Across Asia, DBS has been involved as Mandated Lead Arranger for over US$2.5 billion (A$2.7 billion) in project finance transactions in the last two years. This placed DBS consistently among the top 15 Mandated Lead Arrangers in the Asia Pacific (ex-Australasia) in 2008 and 2009.
While DBS has been an active participant in the project finance space across various industries, the bank is now setting up a dedicated team to further increase focus on the business and to better service customers amid growing demand for project financing in Asia.
DBS said that with economic development in Asia, there will be rapid growth in infrastructure and strong demand for energy/ resources in many of DBS’ key growth markets, including China, India and Indonesia.
According to The Asian Development Bank, it is estimated that infrastructure investment in Asia will be US$750 billion per year from 2010-2020. In particular, India and Indonesia are projected to make significant investments over the next few years to increase their power generation capacity so as to meet domestic consumption needs.
The team’s head, Lim Wee Seng, managing director of Project Finance, at DBS said that with the growing demand for infrastructure, energy and natural resource flows across Asia, companies are increasingly looking to invest in Asia’s growth through the development of large scale projects.
The bank recognises the significant opportunities arising from these developments and believes this potential would be better captured by a dedicated PF team, due to the capital and time-intensive nature of arranging and executing typically long-tenure PF deals. As an Asian bank, DBS believes its deep understanding of this region, regional connectivity and longstanding involvement in the project finance space makes us strong partners for clients as they expand in Asia, Mr Seng added.
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