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UOB prices its US$500m notes issue
United Overseas Bank (UOB) has priced the issue of its US$500 million subordinated notes due 2026 and callable in 2021 under its S$15 billion euro medium term note programme.
The notes, priced at 99.574 per cent of their principal amount, bear an interest rate of 3.5 per cent per annum payable in arrears semi-annually, UOB said in a Singapore Exchange announcement on Thursday.
If the notes are not redeemed or purchased and cancelled on the first call date, the interest payable on the notes from the first call date to the maturity date shall be reset to a fixed rate equal to the US dollar five-year mid-swap rate prevailing on the first call date plus the initial spread of 2.236 per cent.
UOB expects the notes to be rated A2 by Moody's Investor Service and A+ by Fitch Ratings.
The first call date and maturity dates for the notes are Sept 16, 2021, and Sept 16, 2026, respectively.
The issue date of the notes is currently expected to be March 16, 2016.
Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Credit Suisse (Singapore), HSBC and UOB are the joint lead managers for the notes.