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UOB Indonesia to set Basel template 

April 28, 2014
Kit Yin Boey, IFR Asia

Bank UOB Indonesia is set to issue the country’s first Basel III-compliant subordinated bond in a long-awaited move that promises to set a template for other local banks.

Bank UOB, a subsidiary of Singapore’s United Overseas Bank, held presentations last week to market a Tier 2 bond that will comply with the country’s newly implemented regulations for loss-absorbing bank capital securities. (See Indonesia Debt capital markets.)

The bank is keeping the issue size at a conservative Rp1trn (US$88m) to test demand, but the deal will set a significant benchmark in a country that has been relatively slow to adopt Basel III standards. 

Read more: IFR Asia

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