Dah Sing Bank has completed the sale of a US$300 million dual-tranche bond, pricing it within earlier indicated ranges, according to a statement issued by sole book-runner HSBC. The Hong Kong lender offered one fixed-rate tranche and one floating-rate tranche, each with a five-year maturity and a size of US$150 million, giving investors a choice in the current rising interest-rate environment. The fixed-rate tranche carries a coupon of 4.125 per cent and was priced at 99.727 to yield 4.186 per cent. The yield translates into 31 basis points above the mid-swap rate. The floater was priced at par to give a coupon of 29 basis points over the three-month US-dollar London Interbank Offered Rate (Libor). The bond had been marketed at an indicative spread of 27-30 basis points above Libor. The senior bonds are the first issued from Dah Sing Bank's US$1 billion euro medium-term note programme, which was set up in June 2002. Both tranches were oversubscribed, with the fixed-rate note attracting slightly greater interest, said Bryan Pascoe, head of debt syndication at HSBC. However, because this was the first time Dah Sing borrowed in the international market through a senior note, there was also a lot of interest for the floater from other banks, he said. Seventy-two per cent of the floating-rate note was bought by banks while 18 per cent went to asset managers and 10 per cent to corporates. Of the fixed-rate bonds, banks took 77 per cent, asset managers 14 per cent and insurance companies 5 per cent while the remaining 4 per cent ended up with private banks and corporates. Buyers from Hong Kong and China accounted for 75 per cent of the fixed-rate tranche and 70 per cent of the floating-rate note. The bonds were rated Baa1 by Moody's Investors Service and A- by Fitch Ratings. 'The rating reflects [Dah Sing Bank's] strong management track record, focused strategy, and incorporates Moody's expectation that [the bank] will continue to perform well, despite being a smaller player in a crowded market,' the ratings agency said in a statement. Its higher risk profile was balanced by its sufficient capital, sound asset quality and reasonable profitability, Moody's said.