News
FINANCIAL SERVICES, MARKETS & INVESTING | Staff Reporter, Singapore
view(s)

UOB to issue $750m 3.58% perpetual capital securities

They will be issued under its US$15b global medium term note programme.

United Overseas Bank (UOB) is set to issue $750m in perpetual capital securities, at a fixed distribution rate of 3.58% per annum, first callable in 2026, a filing with the Singapore Exchange (SGX) revealed.

Also read: UOB prices US$600m notes at 3.75%

The perpetual securities will be issued under the US$15b global medium term note programme.

The securities are subject to a reset on the first reset date on 17 July 2026, and every seven years thereafter, to a rate equal to the then-prevailing seven-year SGD swap offer rate plus the initial spread of 1.795%.

Distributions are payable semi-annually in arrear, unless cancelled by the company at its sole discretion or unless the company has no obligation to pay the distributions, in each case subject to the terms and conditions of the perpetual capital securities.

The perpetual capital securities are expected to be rated Baa1 by Moody’s Investors Service, BBB- by Standard & Poor’s Rating Services and BBB by Fitch Ratings.

“The perpetual capital securities are intended to qualify as ‘Additional Tier 1’ regulatory capital of the company,” UOB said.

An application will be made to the Singapore Exchange Securities Trading (SGX-ST) for the listing and quotation of the perpetual capital securities.

UOB has been appointed as the Sole Global Coordinator for the perpetual capital securities, and together with Australia and New Zealand Banking Group, Standard Chartered Bank (Singapore), The Hongkong and Shanghai Banking Corporation, Singapore Branch and UBS AG Singapore Branch as the joint lead managers. 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.