United Overseas Bank (UOB) has priced EUR850 million ($1.28 billion) worth of fixed rate covered bonds. The bonds carry a coupon of 2.718% per annum and are payable annually in arrears.
The bonds will be issued as the 13th series under the bank’s US$15 billion ($19.58 billion) global covered bond programme and will mature on Dec 1, 2030.
Issued at 100% of the principal amount of the bonds, these will be guaranteed as to payments of interest and principal by Glacier Eighty. The guarantee is secured by a portfolio of loans bought by Glacier Eighty from UOB and other assets from the former.
The covered bonds are expected to be rated Aaa by Moody’s Investors Service and AAA by Standard & Poor’s Rating Services.
The bonds are expected to be issued on Dec 1.
UOB, BNP Paribas, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (HSBC), Landesbank Hessen-Thüringen Girozentrale and Société Générale have been appointed as joint lead managers.
See also: Julius Baer books US$186 mil loss provision on property loans
Shares in UOB closed 4 cents higher or 0.12% up at $33.89 on Nov 24.
