UOB prices £350m of 5-year covered bonds at 24bps over 3-month Libor

UNITED Overseas Bank (UOB) will issue £350 million (S$644.8 million) of five-year covered bonds under an existing global covered bond programme at a floating coupon of 24 basis points over the three-month Sterling Libor rate.

The bonds, which will be issued on Feb 28, will be sold at 100 per cent of the principal amount. They mature on Feb 28, 2023.

The bonds will be secured by a portfolio of loans and other assets, and are expected to be rated "Aaa" by Moody's Investors Service and "AAA" by Standard & Poor's.

This will be the fifth series of bonds issued under the bank's US$8 billion global covered bond programme.

UOB, Credit Suisse Securities (Europe) and HSBC Bank are the lead managers of the deal.