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UOB prices $400m perpetual capital securities

It will be issued under a $41.5b (US$30b) global medium term note programme.

UOB has priced a perpetual capital securitiesat $400m, which will bear a fixed distribution rate of 4.25% per annum. 

These will be issued under the $41.5b (US$30b) global medium-term note programme. 

It is subject to a reset on 4 October 2027 to a rate equal to the then-prevailing five-year Singapore Overnight Rate Average Overnight Indexed Swap plus the initial spread of 1.47%. 

READ MORE: UOB signs MOU with Korean Housing Finance Corp

UOB has also been appointed as the sole global coordinator and bookrunner for the perpetual capital securities.

The perpetual capital securities are also intended to be under “additional tier 1 regulatory capital of the company,” UOB noted. 

READ MORE: UOB profits down 11% to S$906m in Q1 amidst market volatility

“The perpetual capital securities may be written down permanently (in whole or in part) and any accrued and unpaid distribution may be cancelled in respect of each Perpetual Capital Security by the Company upon the occurrence of a Loss Absorption Event,” UOB also said.

The perpetual capital securities are projected to be issued on 4 July 2022.

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