Dah Sing Bank Ltd. is set to issue Basel III-compliant Tier 2 subordinated notes on Jan. 15 to raise US$225 million, Fitch Ratings said.
The 10-year notes will be issued under the bank's US$2 billion euro medium-term note program. They will be callable after five years and semiannually thereafter. They will carry a fixed interest rate of 5% per annum up to the first call date and reset semiannually thereafter, with the interest rate based on the five-year U.S. Treasury rate plus 255 basis points.
The bank will use proceeds from the issuance to replace current obligations that will become callable in January.
Dah Sing Bank is a unit of Dah Sing Banking Group Ltd.