UOB to issue A$750m in floating rate notes due May 2024 in Sydney, priced at 100.3%
UOB'S Sydney branch on Wednesday announced that it will be issuing A$750 million (S$748.6 million) in floating rate notes on Aug 17, 2021.
The notes were initially offered with a coupon of three-month bank bill swap reference rate (BBSW) plus 0.35 per cent per annum payable quarterly in arrear. The final pricing was set at 24 basis points above the BBSW.
In a bourse filing on Wednesday morning, the bank said it has priced this tranche of bonds at 100.3 per cent of the principal amount of the notes, less accrued interest of three days between Aug 17 and 20, excluding the 20th.
This tranche of notes will be combined with an existing series of floating rate notes that was issued on May 20, worth A$250 million, that are also due in May 2024, to form a single series, UOB said.
The notes will be issued under the US$15 billion Global Medium Term Note Programme, and are expected to be rated Aa1 by Moody's Investors Service, AA- by Standard & Poor's Rating Services, and AA- by Fitch Ratings.
These notes cannot be purchased or sold in the US or to any US citizen, however.
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ANZ has been appointed the sole lead manager and book runner for the notes.
Since announcing the bonds issue, UOB said on Wednesday it has received strong support from a domestic institutional investor base that included asset managers, bank treasuries and superannuation funds.
The bank added that the final pricing of 24 basis points above the BBSW was the tightest achieved by a financial institution in the three-year bond space, including major banks, in the Australian dollar markets since the global financial crisis in 2009.
Commenting on the bonds issue, UOB head of group central treasury Koh Chin Chin said: "We are very appreciative of the continued support from our investors which allowed for this large upsize."
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