Yahoo Finance UOB prices $850 mil perpetual capital securities with 5.25% coupon
The perpetual capital securities will be first callable in 2028.
United Overseas Bank (UOB) says it intends to issue $850 million worth of perpetual capital securities on Jan 13.
The perpetual capital securities come with a fixed distribution rate of 5.25% and will be first callable in 2028. They will be subject to a reset on Jan 19, 2028, and every five years thereafter to a rate equal to the then-prevailing five-year Singapore Overnight Rate Average overnight indexed swap (SORA-OIS) plus the initial spread of 2.393%.
The perpetual capital securities will be issued under the US$30 billion ($39.82 billion) global medium-term note programme and are intended to qualify as additional Tier 1 regulatory capital of the bank. They are expected to be rated Baa1 by Moody’s Investors Service and BBB+ by Fitch Ratings.
“We are pleased to kick start the year in the Singapore dollar (SGD) bond market with our SGD additional tier (AT) 1 issuance, also the first benchmark transaction in the SGD bank capital market since August last year. With rising global yields, household names with strong credit, such as UOB, becomes even more attractive, which drove the strong demand for our deal," says Koh Chin Chin, head of group treasury and research at UOB.
Shares in UOB closed at $29.92 on Jan 12.
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