UOB to issue A$500m of senior unsecured floating rate notes due 2023

UOB's Sydney branch has priced A$500 million (S$489.6 million) of senior unsecured floating rate notes due October 2023, which will fall under its US$15 billion global medium-term note programme, the bank said on Monday morning in a bourse filing.

The notes will bear a coupon rate at the three-month Australian bank bill swap reference rate plus 46 basis points per annum, payable quarterly in arrear.

The notes are expected to be rated AA- by Standard & Poor's, UOB said. They will not be listed and are expected to be issued on Oct 16.

UOB head of central treasury unit Koh Chin Chin said the bank believes investors are likely to stay cautious and focus on defensive portfolio management, given market uncertainties ahead of the upcoming US presidential election.

"As such, we first secured a benchmark size for our latest notes issuance with anchor investors before opening it to broader participation at the set price," she said.

Ms Koh added that the transaction structure reflected UOB's prudent approach to the market and provided an efficient way for other keen investors to participate in the new offering.

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National Australia Bank Limited and Standard Chartered Bank have been appointed joint lead managers for the notes.

UOB shares ended at S$19.45 on Friday, down S$0.08 or 0.4 per cent.