OCBC prices S$450 million perpetual capital securities at 4.05% 

OCBC has priced S$450 million in perpetual capital securities at 4.05 per cent under its US$30 billion global medium-term note programme.

They are first callable in 2029 and are intended to qualify as as OCBC’s Additional Tier-1 capital, announced the bank on Wednesday (Jan 10). 

OCBC will be the sole lead manager and bookrunner for the issue. The bank intends to use the net proceeds for general corporate purposes.

The perps are to be issued on Jan 16, 2024, and listed on the Singapore Exchange the day after. 

Holders will receive distributions in arrears and may redeem the perps on the first reset date on Oct 16, 2029, or any distribution payment date falling after the first reset date.

If the perps are not redeemed on the first reset date, the distribution rate will be reset on the first reset date and every five years thereafter. This will be at a per-annum fixed rate equal to the aggregate of the then-prevailing five-year Singapore Overnight Rate Average Overnight Indexed Swap – and the initial spread of 1.3165 per cent.

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The perps are expected to be rated “Baa-1” by Moody’s Investors Service; “BBB-” by Standard and Poor’s Rating Services; and “BBB+” by Fitch Ratings.

Shares of OCBC : O39 0% ended Tuesday S$0.08 or 0.6 per cent higher at S$12.88.