OCBC prices US$750m in Tier 2 notes at 4.602%

OCBC has priced US$750 million worth of subordinated notes which are expected to qualify as Tier 2 capital of the bank.

The notes, which bear a coupon of 4.602 per cent per annum, will be issued at par on Jun 15, 2022, the bank said in a bourse filing on Thursday (Jun 9).

If they are not redeemed by their call date on Jun 15, 2027, the interest rate will reset to a fixed rate per annum equal to the aggregate of the then-prevailing 5-year US Treasury rate and 1.575 per cent until their maturity date on Jun 15, 2032.

OCBC expects the notes to be rated “A2” by Moody’s Investors Service, “BBB+” by Standard & Poor’s and “A” by Fitch Ratings.

Barclays Bank (Singapore branch), Citigroup Global Markets Singapore, JPMorgan and OCBC are the joint lead managers and joint bookrunners for the issue.

OCBC closed 0.1 per cent or S$0.01 lower at S$11.89 on Wednesday.