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.
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%.
