By Marisa Wong
Morgantown, W.Va., Aug. 18 – Oversea-Chinese Banking Corp. Ltd. said it priced S$500 million of non-cumulative non-convertible perpetual capital securities qualifying as Basel III tier 1 capital.
OCBC Bank priced the securities (expected: A3/BBB-/BBB) at par with a fixed coupon of 3.8%.
The securities are callable five years after the issue date. If the notes are not redeemed, the distribution rate will be reset every five years after that to a fixed rate equal to the then-current five-year Singapore dollar swap offer rate and the initial spread of 151 basis points.
OCBC Bank is the bookrunner.
Proceeds will be used for general corporate purposes.
The bank is based in Singapore.
| Issuer: | Oversea-Chinese Banking Corp. Ltd.
|
| Issue: | Non-cumulative non-convertible perpetual capital securities qualifying as Basel III tier 1 capital
|
| Amount: | S$500 million
|
| Maturity: | Perpetual
|
| Bookrunner: | OCBC Bank
|
| Joint lead managers: | Citigroup Global Markets Singapore Pte. Ltd. and J.P. Morgan (SEA) Ltd.
|
| Coupon: | 3.8%; reset every five years if notes are not called
|
| Price: | Par
|
| Yield: | 3.8%
|
| Call option: | On or after Aug. 25, 2020
|
| Announcement date: | Aug. 18
|
| Settlement date: | Aug. 25
|
| Ratings: | Moody’s: A3 (expected)
|
| Standard & Poor’s: BBB- (expected)
|
| Fitch: BBB (expected)
|
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