RETAIL investors looking for a product yielding far more than bank deposits have a new option to consider.

Singapore's largest bank, DBS, has taken the wraps off a $500 million preference share issue that qualifies for Tier 1 capital to small investors.
The launch on Thursday is the largest retail offering ever made in Singapore and dwarfs OCBC's $250 million preference share issue for retail investors unveiled in 2008.

DBS has the option to further increase the offer to as much as $800 million.
The shares, which operate in a similar manner to bonds, pay an attractive dividend of 4.7 per cent a year for 10 years - well above the 0.125 per cent interest that a saver currently gets on a POSB savings account.

The offer follows DBS selling $1.7 billion worth of preference shares last month to institutional investors. And the retail tranche should prove just as popular, judging from the voracious appetite of institutional investors.

DBS launches $500m share issue