Bank of East Asia prices perpetual bond -source

HONG KONG Oct 29 (Reuters) - Bank of East Asia (0023.HK) has priced a $500 million hybrid tier I bond to yield 8.5 percent to the first callable date, a source close to the deal said on Friday.

The sale of the perpetual bonds, not callable for 10 years, was arranged by Deutsche Bank (DBKGn.DE) and UBS (UBSN.VX).

The pricing comes at the tight end of the initial guidance of 8.5-8.75 percent indicated on Thursday.

The yield is equivalent to 507.6 basis points above US treasuries and 490.7 basis points over mid-swaps.

After receiving orders of $5.375 billion, 80 percent of the allotments went to Asia and 20 percent to Europe.

By investor type, 69 percent went to private banks, 17 percent went to funds, 9 percent to banks and 5 percent to miscellaneous investors. (Reporting by Umesh Desai; Editing by Jonathan Hopfner)