DBS Bank has successfully priced its inaugural offshore yuan bond issue following overwhelming demand from investors.
The 500 million yuan, three-year bonds bearing an annual coupon of 2.5 per cent were priced at 99.76 per cent of their face value.
The issue closed with an order book of about two billion yuan, a subscription rate of nearly four times.
Investors in Singapore were allocated 43 per cent of the issue while those in Hong Kong got 51 per cent.
The remainder went to investors in other regions.
DBS Bank chief financial officer Chng Sok Hui said: "With ICBC being appointed a renmimbi clearing bank in Singapore, we see increasing opportunities to promote the use of the renmimbi as a functional currency, capitalising on the increasing trade and investment flows between Asean and China."
The bonds are expected to be rated Aa1 by Moody's Investors Service, AA- by Standard & Poor's Ratings Group and AA- by Fitch Ratings.
The net proceeds from the issue will be used for the general business purposes of DBS and its consolidated subsidiaries.