UOB's Sydney branch prices A$900m in floating rate notes due 2027

UOB's U11 Sydney branch intends to issue A$900 million (S$868 million) in floating rate notes due 2027 under its US$15 billion global medium term note programme, the bank said in a bourse filing on Friday (Feb 18).

The coupon rate is a 3-month bank bill swap reference rate plus 0.72 per cent per annum, payable quarterly in arrear. UOB expects to issue the notes on Feb 24.

The issuance reached an order book of about A$1.16 billion, the highest UOB has garnered, it said in a separate press statement.

UOB expects the 5-year notes to be rated Aa1 by Moody's Investors Service, AA- by Standard & Poor's Rating Services and AA- by Fitch Ratings.

Australia and New Zealand Banking Group (ANZ), the Commonwealth Bank of Australia and UOB are the joint lead managers and bookrunners for the notes.

UOB head of group central treasury unit Koh Chin Chin said the bank has been pre-financing actively in the market since October 2020, ahead of macroeconomic and structural headwinds.

"Together with the latest print of A$900 million, we have achieved a total issuance volume of A$3.6 billion during this period. We are thankful for the strong support and repeated demand across both domestic and regional investors," she said.

Shares of UOB were trading 0.2 per cent or S$0.07 lower at S$32.79 as at 10.23 am on Friday.