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UOB launches $800m Basel III debut 

March 18, 2014
Chien Mi Wong, Finance Asia

United Overseas Bank (UOB) sold a $800 million Basel III-compliant Tier 2 subordinated bond on Tuesday, pricing the transaction deep inside the curve of its existing old-style notes as institutional investor demand for the structure increases.

The bond – which has a tenor of 10.5 years and is callable in 5.5 years – is Singapore’s and Southeast Asia’s first ever dollar-denominated Basel III-compliant transaction, according to bankers on the deal. It is also the first dollar benchmark note from the Lion City this year.  

UOB’s deal – the financial institution’s return to bank capital in two years – priced 25bp tighter than its initial price guidance of Treasuries plus 250bp, supported by strong institutional investor demand, according to a term sheet seen by FinanceAsia. The bond has a coupon of 3.75%

Read more: Finance Asia

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