By Aaron Hochman-Zimmerman
New York, June 2 - Oversea-Chinese Banking Corp. Ltd. (Aa3/A-/A+) priced S$1 billion nonconvertible non-cumulative class B preference shares at S$100 per share with a fixed dividend rate at 5.1%, according to a press release.
The placement will come in two parts: 9.5 million shares will be offered until July 15, while an offer via ATM machines for the remaining 0.5 million will be held from July 16 to 28.
The perpetual shares will qualify as tier 1 capital. They will be callable after five years and then on each dividend date.
Proceeds from the offering will be used for general corporate purposes. Oversea-Chinese said the issue will allow it to "strengthen its capital base and to have a better balance of the different types of capital so as to achieve greater capital efficiency."
OCBC is a Singapore-based commercial and retail bank.
| Issuer: | Oversea-Chinese Banking Corp. Ltd.
|
| Amount: | S$1 billion
|
| Issue: | Class B preference shares
|
| Maturity: | Perpetual
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| Dividend: | 5.1%
|
| Price: | S$100 per share
|
| Call: | On dividend dates starting five years from issue
|
| Pricing date: | June 2
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A-
|
| Fitch: A+
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