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UOB to issue A$500m 3-year senior unsecured floating-rate notes

THE Sydney branch of United Overseas Bank (UOB) expects to issue its A$500 million (S$477 million) senior unsecured floating-rate notes due in 2022 on July 25, the lender said in a bourse filing late on Wednesday night.

The coupon for the notes was priced at the three-month bank bill swap rate plus 0.53 per cent per annum, payable quarterly.

Koh Chin Chin, head of central treasury unit at UOB, said: "As part of UOB’s overall funding strategy, we are always looking to diversify our investor base, and we’re glad to see close to 90 per cent participation by Australian investors, including many of the largest investors."

The three-year notes are expected to be rated "Aa1" by Moody’s Investors Service and "AA-" by Standard & Poor’s Rating Services, UOB said.

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Fitch Ratings assigned a rating of "AA-/stable" to the notes on Thursday morning. This is the same level as UOB’s "AA-" long-term issuer default rating (IDR), as the notes will rank equally with all the other unsecured and unsubordinated obligations of the bank, Fitch said.

The notes will be issued under UOB’s US$15 billion global medium-term note programme.

The joint lead managers for the notes are HSBC, Sydney Branch; National Australia Bank; UOB, Sydney Branch; and Westpac Banking Corporation.