UOB prices SORA-referencing capital securities

It is priced 181 bp above the prevailing rate as of 7 January.

UOB has announced the successful pricing of capital securities with a coupon rate that references the Singapore Overnight Rate Average Overnight Indexed Swap (SORA-OIS), a statement read.

The reset coupon rate of the perpetual, non-call five-year additional Tier 1 (AT1) securities on the first call date will reference the five-year SORA-OIS rate.

Priced at a coupon of 2.25% per annum, 181 basis points above the prevailing five-year SORA-OIS as at 7 January, UOB’s latest AT1 securities with a transaction size of $150m were subscribed by high-net-worth and institutional investors.

If the bonds are not redeemed in 2026, the coupon will be reset based on 181 basis points above the five-year SORA-OIS on the first call date.