United Overseas Bank Limited (UOB) has priced US$600 million ($821.3 million) subordinated notes due March 2031 and callable March 2026.
The US$-denominated notes are priced at 99.739% of the principal amount of the notes, and will carry a coupon of 1.75% per annum.
They will be issued under the US$15 billion global medium term note programme and are intended to qualify as Tier 2 regulatory capital of UOB.
The notes are expected to be issued on September 16.
UOB says the notes are expected to be rated A2 by Moody’s Investors Service, BBB+ by S&P Global Ratings, and A by Fitch Ratings.
Credit Suisse, The Hongkong and Shanghai Banking Corporation (HSBC), Société Générale, Standard Chartered Bank (Singapore), and UOB have been appointed as joint lead managers.
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“We moved quickly to seize a window of opportunity on Tuesday and as a result achieved the tightest possible spread for the transaction. The transaction was sized to meet UOB’s modest capital requirements given our already strong capital base. The strong reception for this offering shows investors’ continued confidence in UOB’s strong balance sheet position and sound business fundamentals despite ongoing economic headwinds," says Lee Wai Fai, group CFO at UOB.
Shares in UOB closed flat at $19.45 on September 8.
