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FINANCIAL SERVICES | Staff Reporter, Singapore

UOB to issue €1b covered bonds due 2027

This is the first euro-covered bond in Singapore in two years.

United Overseas Bank (UOB) will issue $1.6b (€1b) 0.01% covered bonds due 2027 under its US$8b global covered bond programme. Expected issue date is on 1 December.

The bonds will have an issue price of 101.553% of the principal amount of covered bonds, and a coupon of 0.01% per annum payable annually in arrear, UOB said in an announcement.

The transaction has a final orderbook in excess of $3.35b (€2.1b) from 85 investors, and its transaction size of almost $1.6b (€1b) is the largest ever from Singapore, the bank added.

This will be the first euro-covered bond from Singapore in two years, the first negative-yielding covered bond from Singapore and the deepest negative yield ever achieved for an APAC issuer.

UOB expects the covered bonds to be rated Aaa by Moody’s Investors Service and AAA by S&P.

UOB, HSBC France, Société Générale, and UBS AG London Branch have been appointed as lead managers for the covered bonds. Meanwhile, Norddeutsche Landesbank – Girozentrale – has been appointed as co-manager for the covered bonds.

(€1 = S$1.6)

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