The covered bonds are expected to be rated “Aaa” by Moody’s Investors Services and “AAA” by Fitch Ratings. They will be guaranteed by Red Sail and secured by a portfolio of assets purchased by Red Sail from OCBC.
Oversea-Chinese Banking Corporation (OCBC) has priced EUR500 million ($732.6 million) worth of fixed rate covered bonds under its US$10 billion ($13.47 billion) global covered bond programme.
The covered bonds, which are due 2027, will bear interest at a fixed rate of 3.29% per annum. They are payable annually in arrear. Net proceeds from the issue of the bonds will be used for OCBC’s general corporate purposes.
