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Dah Sing dispels Basel doubts 

January 27, 2014
Neha D'silva, IFR Asia

Last week’s offering of Basel III-compliant Tier 2 bonds from Hong Kong-based Dah Sing Bank pointed to increasing investor comfort with this relatively new form of subordinated debt in Asia. 

The 5.25% notes priced at 99.191 to yield 5.437%, or 375bp over US Treasuries, tighter than initial talk in the area of 400bp. The spread tightened 10bp further in the secondary market from reoffer levels on debut.

“What investors really want to see is a Basel III bond perform in the secondary, which gives them some confidence,” said a banker close to the deal.

Read more: IFR Asia


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