SeaTown Holdings International, a unit of Singapore’s Temasek Holdings Pte., has raised around $180 million from DBS Group Holdings Ltd.’s private bank clients for its third private credit fund, according to people familiar with the matter.

Singapore’s biggest bank has withdrawn an application to start talks to buy as much as 49% of Alliance Bank Malaysia Bhd., replacing it with one to acquire up to 30% instead, people with knowledge of the matter said.