By Marisa Wong
Madison, Wis., July 3 - United Overseas Bank Ltd. said it priced S$1.2 billion of 3.15% fixed-rate subordinated notes (Aa2/A+/A+) due 2022 at par.
United Overseas Bank Ltd., HSBC Ltd., Standard Chartered Bank and UBS AG, Singapore Branch are the joint lead managers and joint bookrunners for the Regulation S deal.
The notes are callable in 2017. If the notes are not redeemed, the coupon will be reset to a fixed rate equal to the prevailing five-year Singapore dollar swap offer rate on the call date plus an initial spread of 2.115%.
According to a company announcement, the notes are expected to qualify as lower tier 2 capital.
The notes will be issued under the company's S$5 billion euro medium-term note program established on June 8, 2010 and updated on Feb. 27.
The settlement date is expected to be July 11.
Proceeds will be used to partially finance the maturity of the Singapore-based retail bank's outstanding upper tier 2 subordinated notes due 2013.
| Issuer: | United Overseas Bank Ltd.
|
| Issue: | Fixed-rate subordinated notes
|
| Amount: | S$1.2 billion
|
| Maturity: | 2022
|
| Bookrunners: | United Overseas Bank Ltd., HSBC Ltd., Standard Chartered Bank, UBS AG, Singapore Branch
|
| Coupon: | 3.15%
|
| Price: | Par
|
| Yield: | 3.15%
|
| Call feature: | In 2017
|
| Pricing date: | July 3
|
| Settlement date: | July 11
|
| Distribution: | Regulation S
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: A+
|
| Fitch: A+
|
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