UOB prices S$850 million perpetual securities at 3%

UOB has priced S$850 million in perpetual capital securities at 3 per cent under its US$30 billion Global Medium Term Note Programme, the bank announced on Wednesday (Jan 14).

The issue date of the securities is expected to be Jan 21, and the securities are first callable in 2033.

The rate is subject to a reset on Jan 21, 2033, and every seven years thereafter, to a rate equal to the prevailing seven-year Singapore Overnight Rate Average Overnight Indexed Swap plus the initial spread of 0.94 per cent.

The securities were priced at 100 per cent of their principal amount.

The securities are perpetual but may be redeemed at the option of the bank on the first reset date in 2033, or on any distribution payment date thereafter.

Distributions are payable semi-annually in arrears and are non-cumulative.

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UOB is the sole coordinator for the issuance. It is also a joint lead manager and joint bookrunner along with Citigroup Global Markets Singapore.

The securities are expected to be rated Baa1 by Moody’s Investors Service and BBB+ by Fitch Ratings, the bank said.

Shares of UOB ended at S$36.51 on Wednesday, S$0.32 or 0.9 per cent higher before the announcement.

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