Institutional interest in Basel III bonds gains strength

[SINGAPORE] UOB's early and steady march in the issuance of Basel III-compliant bonds offers a case study on shifting appetite for such bonds.

This has been highlighted in its latest $500 million Singapore-dollar Basel III-compliant bond, which was priced last week, sources say.

Just over 40 per cent of the callable bond issue - the fourth Basel III instrument issued by UOB to date - were taken up by insurance companies, making them the single-largest investor in the latest instrument issued by the bank.