UOB sells $500m Basel III compliant perpetual bonds

[SINGAPORE] United Overseas Bank yesterday sold $500 million of perpetual bonds that will be Basel III compliant, with the loss-absorbing feature, amid robust demand - the first local bank to sell two tranches of bonds under the stricter capital rules.

The issue was 3.7 times subscribed with orders hitting $1.85 billion, and because of the strong demand for the perps, UOB was able to price it lower than the $850 million 4.9 per cent tranche in July.

"The books were well bid," said one banker. Another said that the issue had good institutional participation.