The covered bonds, which are Euro-denominated, will carry a coupon of 0.01% per annum. They will be issued at 99.809% of the principal amount of the covered bonds on May 25 and will mature on May 25, 2029.
The covered bonds were priced at Euro swap +10 basis points, seven basis points cheaper than UOB’s seven-year euro covered bond transaction in November 2020, despite this issuance’s longer maturity of eight years.
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Glacier Eighty (CBG) will guarantee the covered bonds, secured by a portfolio of loans purchased by CBG from UOB and other assets of CBG.
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Moody's Investors Service is expected to rate the covered bonds Aaa, while Standard & Poor's Rating Services are expected to give a AAA rating.
UOB, BNP Paribas, HSBC Continental Europe and Norddeutsche Landesbank – Girozentrale – have been appointed as lead managers.
UOB states that the final orderbook is approaching EUR800 million at reoffer from 40 accounts, with 60% of final allocations going to central banks, official institutions, and fund managers.
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“We are thankful for the participation from high quality investors who have supported us through the years and are also pleased to have achieved a large issuance at attractive pricing despite the challenging market backdrop,” says Koh Chin Chin, head of group central treasury unit.
Shares in UOB closed 57 cents or 2.26% higher at $25.75 on May 18.
