News: CBA UPDATE 3-Asian banks tap US dollar bond markets for $4.75 billion

(Adds CBA bond details in paragraphs 1-3 and dollar bond market issuance figures in paragraph 5)

At least two Asia Pacific banks, led by the Commonwealth Bank (CBA) and DBS Group DBSM.SI , have aggressively tapped U.S dollar bond markets to raise $4.75 billion in separate transactions, according to term sheet seen by Reuters.

CBA, which is Australia's largest bank by market capitalisation, squared away $3.25 billion in three issuances with $1.75 billion in a five-year covered bond, $900 million in a two-year fixed rate note and $600 million in a two-year floating rate note, a term sheet showed.

CBA declined to comment on the transaction. Singapore's DBS Group tapped the dollar bond markets for the first time in nearly two years as it raised $1.5 billion.

The deals came amid a blitz of bonds launched on Tuesday in the US when there were 21 issuances worth $31 billion, according to IFR.

A post Labor-day rush of bond issuance in the U.S. by global investment-grade-rated companies added renewed pressure on long-end U.S. Treasuries, as some investors switched to buying top-rated corporate debt offering higher yields than those on government bonds.

DBS issued a two-year fixed rate bond that raised $750 million and a two-year floating rate note that raised the same amount, the term sheet said.

The coupon on the fixed rate note was set at 5.479% while the floating rate note was priced at the Secured Overnight Financing Rate (SOFR) plus 61 basis points.

DBS did not comment on the deal but confirmed the transaction in a term sheet sent to Reuters.

Investors subscribed for more than $2.65 billion of the two- year fixed rate bond, the term sheet showed. The floating rate note attracted over $2 billion in orders from investors.

U.S. and Asia-based investors bought nearly 90% of the fixed bond and accounted for 98% of the floating note, the term sheet showed.

DBS has flagged that the proceeds from the bonds would be used for its finance and treasury activities.