By Marisa Wong
Morgantown, W.Va., Oct. 12 – United Overseas Bank Ltd. announced it priced $650 million of 3 7/8% subordinated non-cumulative non-convertible perpetual capital securities at par.
United Overseas Bank, Credit Suisse (Singapore) Ltd., Deutsche Bank AG, Singapore Branch and Hongkong and Shanghai Banking Corp. Ltd. are the joint lead managers for the Regulation S deal.
The securities (expected: Baa1//BBB) will be issued under the bank’s S$15 billion euro medium-term note program and are intended to qualify as additional tier 1 regulatory capital.
The distribution rate is subject to a reset on Oct. 19, 2023 and every five years after that. The reset rate will be the prevailing five-year U.S. dollar swap rate plus an initial spread of 179.4 basis points.
The securities are callable on Oct. 19, 2023 and on any semiannual distribution payment date after that.
The retail bank is based in Singapore.
| Issuer: | United Overseas Bank Ltd.
|
| Issue: | Subordinated non-cumulative non-convertible perpetual capital securities
|
| Amount: | $650 million
|
| Maturity: | Perpetual
|
| Distribution rate: | 3 7/8%; subject to a reset on Oct. 19, 2023 and every five years after that at prevailing five-year U.S. dollar swap rate plus an initial spread of 179.4 bps
|
| Price: | Par
|
| Managers: | United Overseas Bank, Credit Suisse (Singapore) Ltd., Deutsche Bank AG, Singapore Branch and Hongkong and Shanghai Banking Corp. Ltd.
|
| Call option: | On Oct. 19, 2023 and on any semiannual distribution payment date after that
|
| Pricing date: | Oct. 12
|
| Settlement date: | Oct. 19
|
| Expected ratings: | Moody’s: Baa1
|
| Fitch: BBB
|
| Distribution: | Regulation S
|
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