OCBC prices S$200m in 3% perpetual capital securities, first callable in 2030

LENDER OCBC has priced S$200 million in 3 per cent perpetual capital securities, first callable in 2030, the mainboard-listed bank said on Thursday evening.

Net proceeds from the issuance, a private placement under OCBC's US$30 billion global medium-term note programme, will be used for general corporate purposes.

The capital securities are expected to qualify as Additional Tier 1 capital for OCBC, with a "Baa1" rating from Moody's Investors Service.

Holders can look forward to semi-annual distributions at a fixed rate of 3 per cent a year from the issue date to the first reset date of Sept 30, 2030, the earliest when OCBC can redeem the capital securities.

If the capital securities are not redeemed then, the distribution rate will be reset every 10 years to a fixed rate pegged to a combination of the then-prevailing 10-year swap offer rate and the initial spread of 2.19 per cent.

OCBC can also redeem the capital securities upon a tax event or if they no longer qualify as eligible capital, and can cancel distributions at its sole discretion, it noted.

OCBC and Standard Chartered are the joint lead managers and bookrunners for the issue, with the capital securities slated for listing on the Singapore bourse on Oct 1.

OCBC shed S$0.08, or 0.95 per cent, to S$8.37, before the announcement.