By Marisa Wong
Madison, Wis., April 8 - Oversea-Chinese Banking Corp. Ltd. priced $1 billion of fixed-rate subordinated notes under its $10 billion global medium-term note program, according to a company announcement.
The notes (expected: A2/BBB+/A+) represent the bank's first Basel III capital instrument and are expected to qualify as tier 2 capital.
The 101/2-year notes priced at 99.4.
The notes carry a coupon of 4% until the call date in October 2019. If the notes are not redeemed on the call date, the interest rate from the call date to maturity will be reset to a fixed rate equal to the five-year mid-swap rate plus 220.3 basis points.
Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan (SEA) Ltd., Merrill Lynch (Singapore) Pte. Ltd. and OCBC Bank acted as joint lead managers and joint bookrunners for this issue.
Proceeds will be used for general corporate purposes.
Settlement is slated for April 15.
The issuer is a financial group based in Singapore.
| Issuer: | Oversea-Chinese Banking Corp. Ltd.
|
| Issue: | Fixed-rate subordinated notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 15, 2024
|
| Bookrunners: | Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan (SEA) Ltd., Merrill Lynch (Singapore) Pte. Ltd. and OCBC Bank
|
| Coupon: | 4% until Oct. 15, 2019; if notes are not called, five-year mid-swap rate plus 220.3 bps beginning Oct. 15, 2019
|
| Price: | 99.4
|
| Call option: | On Oct. 15, 2019
|
| Announcement date: | April 8
|
| Settlement date: | April 15
|
| Ratings: | Moody's: A2 (expected)
|
| Standard & Poor's: BBB+ (expected)
|
| Fitch: A+ (expected)
|
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