By Reshmi Basu
New York, April 12 - Wing Hang Bank Ltd. sold $400 million perpetual upper tier 2 notes (A3/BBB+/A-) at 99.318 to yield mid-swaps plus 85 basis points, according to a market source.
The bonds came at the tight end of price guidance, which was set at 85 to 90 bps more than mid-swaps.
The issue is also non-callable for 10 years. If the bonds are not called, the coupon steps up to three-month Libor plus 185 bps.
Citigroup, HSBC and UBS Investment Bank were lead managers for the Regulation S sale.
Hong Kong-based Wing Hang Bank is engaged in commercial banking and related financial services.
| Issuer: | Wing Hang Bank Ltd.
|
| Amount: | $400 million
|
| Issue: | Upper tier 2 subordinated notes
|
| Maturity: | Perpetual
|
| Coupon: | 6%
|
| Issue price: | 99.318
|
| Yield: | 6.092%
|
| Spread: | Mid-swaps plus 85 bps, Treasuries plus 138 bps
|
| Call option: | Non-callable for 10 years, if not called on April 20, 2017, steps up to three-month Libor plus 185 bps
|
| Lead managers: | Citigroup, HSBC, UBS Investment Bank
|
| Pricing date: | April 12
|
| Settlement date: | April 19
|
| Distribution | Regulation S
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
| Price guidance: | Mid-swaps plus 85 to 90 bps
|
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