DBS Group has drawn strong interest for its first issue of Basel III securities, achieving its target issue size of $800 million, it said on Tuesday.

This amount will be used as Tier 1 capital under the Basel III banking framework, which took effect at the start of this year.

The non-cumulative non-convertible perpetual capital securities are callable in 2019 and were priced at an initial distribution rate of 4.7 per cent, at the lower end of the tender range.

DBS issued the securities in exchange for existing preference shares. It said the move was to help the bank transition to the new Basel III regulations, as existing preference shares "no longer fully qualify" as Tier 1 capital.