The net proceeds from the issue of the capital securities will be used for the bank’s general corporate purposes. They may, subject to MAS’s approval, be redeemed at the option of the bank on Feb 15, 2029, or on any distribution payment date falling after the first reset date; upon the occurrence of a tax event; or if the capital securities no longer qualify as eligible capital.
Oversea-Chinese Banking Corporation (OCBC) (SGX:O39
) has priced $550 million worth of perpetual capital securities under its US$30 billion ($40.25 billion) global medium term note programme.
The capital securities will be first callable in 2029. They are also intended to qualify as the bank’s additional tier 1 (AT-1) capital under the Monetary Authority of Singapore’s (MAS) requirements.
