OCBC prices 500m euro bonds due 2025 at 0.625%

OCBC Bank has priced its 500million euro notes due 2025 at a fixed rate of 0.625 per cent per annum payable annually in arrear.

The notes come under the bank's US$10 billion global covered bond programme.

Net proceeds from the covered bonds, which are expected to be issued on April 18, will be used for general corporate purposes, said OCBC.

The covered bonds are expected to be rated Aaa by Moody's Investors Services and AAA by Fitch Ratings, and will be guaranteed as to payments of interest and principal by covered bond guarantor Red Sail Pte Ltd, OCBC said in a filing with the Singapore Exchange on Thursday.

The guarantee will be secured by a portfolio of assets purchased by Red Sail from OCBC Bank and other assets of Red Sail, it added.

The Singapore branch of Barclays Bank, BNP Paribas, Landesbank Baden-Württemberg, Norddeutsche Landesbank - Girozentrale - and OCBC Bank have been appointed joint lead managers for this issue.

OCBC shares closed S$0.11 or 0.9 per cent higher at S$12.96 on Wednesday.