DBS Bank, Singapore’s largest lender, said on Wednesday that it has successfully priced its inaugural offshore yuan bond issue settled in Singapore.

The 500 million yuan fixed-rate bonds due June 7, 2016, priced at 99.76 percent. The bonds will bear a fixed coupon of 2.5 percent a year with interest payable semi-annually, and are expected to be issued on June 7, 2013.

“The issue attracted strong interest, with an order book of close to 2 billion yuan, being close to four times subscribed,” said the bank in a press release.

Investors in Singapore were allocated 43 percent of the issue, while investors in Hong Kong were allocated 51 percent and in other regions 6 percent.

Asset managers were allocated 80 percent, while private banks got 12 percent and others 8 percent.

“As a leading fixed income house, we will also be working closely with potential issuers who are keen to use the offshore yuan as a funding and investment tool,” said Chng Sok Hui, chief financial officer at DBS.

She said that with Industrial and Commercial Bank of China being appointed a yuan-clearing bank in Singapore, the bank sees increasing opportunities to promote the use of the yuan as a functional currency, capitalizing on the increasing trade and investment flows between the Association of Southeast Asian Nations and China.

The net proceeds from the issue of the bonds will be used for the general business purposes of DBS and its consolidated subsidiaries, said the lender.