Dah Sing sets up Basel III tier two bond

Hong Kong 2
By Steven Gilmore
20 Jan 2014

Hong Kong’s Dah Sing Bank is planning its first Basel III compliant tier two bond — also the first from a Hong Kong bank — and aims to sell a 10 year non-call five deal of around $200m.

The borrower is selling the bond to help it manage the loss of capital recognition on its existing subordinate debt and its general capitalisation. Its outstanding tier two debt began to lose capital treatment at the rate of 10% a year from January 2013.

The bank has perpetual ...

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