UOB blazing a trail in euro covered bonds

Hong Kong

UNITED Overseas Bank is following peer DBS into the covered bond market and, in the process, is about to become the first lender in Asia ex-Australasia to issue the instrument in euros.

The notes, which are expected to price after investor meetings wrap up in Europe on Friday, will establish a template for other Asian banks to print in euros amid growing interest to issue covered bonds in the region. UOB's debut offering is expected to be at a tenor of five years, which is typical for inaugural euro covered bonds, says one banker on the transaction, with modest size ambitions at a little higher than the minimum 500 million (S$776 million) benchmark.