Oversea-Chinese Banking Corporation (OCBC) has priced EUR500 million ($732.6 million) worth of fixed rate covered bonds under its US$10 billion ($13.47 billion) global covered bond programme.
The covered bonds, which are due 2027, will bear interest at a fixed rate of 3.29% per annum. They are payable annually in arrear. Net proceeds from the issue of the bonds will be used for OCBC’s general corporate purposes.
The covered bonds are expected to be rated “Aaa” by Moody’s Investors Services and “AAA” by Fitch Ratings. They will be guaranteed by Red Sail and secured by a portfolio of assets purchased by Red Sail from OCBC.
The covered bonds are expected to be issued on June 11 and listed on June 12.
Barclays Bank, BNP Paribas, Crédit Agricole Corporate and Investment Bank, DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, ING Bank N.V., Norddeutsche Landesbank-Girozentrale and OCBC acted as the joint lead managers. Commerzbank Aktiengesellschaft and Landesbank Baden-Württemberg acted as co-managers for this issue.
Shares in OCBC closed at $14.39 on June 4.
