If the notes are not redeemed, the interest rate from the call date to the maturity date on Sept 10, 2030, will be reset to a fixed rate per annum equal to the aggregate of the then-prevailing 5-year U.S. Treasury Rate and 1.58%.
The notes have been rated A2 by Moody’s Investors Service, BBB+ by Standard & Poors, and A by Fitch Ratings Ltd. They will be issued on Sept 10, 2020.
OCBC Bank says the net proceeds from the issue of the notes, which are expected to qualify as Tier 2 capital of the bank, will be used for the bank’s general corporate purposes.
OCBC Bank, Citigroup Global Markets Singapore, JP Morgan, and Merrill Lynch acted as joint lead managers and joint bookrunners.
See also: OCBC chairman says bank's 'one in 10 event' stress test meets market challenges
Shares in OCBC closed flat at $8.68 on September 2.
