The perpetual capital securities will bear a fixed distribution rate of 4.25% per annum, subject to a reset on Oct 5, 2027, and then 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 1.47%.
United Overseas Bank (UOB) says it intends to issue $400 million worth of perpetual capital securities that will be first callable in 2027.
The SGD-denominated perpetual capital securities will be drawn down under the US$30 billion ($41.57 billion) global medium-term note programme.
