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OCBC prices S$1b perps at 4%, first callable in 2023
OCBC Bank has priced S$1 billion of perpetual capital securities at a distribution rate of 4 per cent, richer than the initial guidance of 4.375 per cent.
The perps are first callable in 2023. If they are not called, the distribution rate will be reset on the call date and every five years thereafter to an initial spread of 181.1 basis points over the prevailing five-year Singapore dollar Swap Offer Rate (SOR).
Issued under OCBC's US$30 billion global medium term note programme, the perps are intended to qualify as Additional Tier 1 capital for OCBC under the requirements of the Monetary Authority of Singapore. The net proceeds from the issue of the capital securities will be used for the general corporate purposes of the bank.
The perps are to be rated Baa1 by Moody’s, BBB- by Standard & Poor’s and BBB by Fitch.
The perps will be issued on Aug 24.