United Overseas Bank’s (UOB) Sydney branch has priced A$1.25 billion ($1.1 billion) in three-year unsecured notes due 2027.
The notes, which will be issued under UOB’s US$30 billion ($40.59 billion) global medium term note programme, will be issued in two tranches.
The first tranche comprises A$950 million in floating rate senior unsecured notes priced at the Bank Bill Swap Rate (BBSW) plus 0.72%.
The second tranche is made up of A$300 million in fixed rate senior unsecured notes priced at 4.67%.
According to UOB, the pricing for both tranches represents the tightest ever for an Asian bank senior issuance above A$1 billion.
The notes are expected to be issued on April 16. They are expected to be rated Aa1 by Moody’s Investors Service, AA- by Standard & Poor’s Rating Services and AA- by Fitch Ratings.
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ANZ, Commonwealth Bank of Australia, UBS and UOB have been appointed as the joint lead managers and bookrunners. Agricultural Bank of China, Singapore Branch, has been appointed as co-manager.
“We remain very committed to being a regular issuer in the Australian market, providing both the domestic and international investor communities with the necessary liquidity through our bonds and our overall Australian dollar (AUD) funding. I am pleased to see our offering drawing active participation, not only from our existing investors but also from new domestic and offshore accounts. The diversity, volume and investor engagement we continue to see in the AUD market is encouraging, and it remains integral to our funding strategy,” says Koh Chin Chin, head of group treasury, research and customer advocacy at UOB.
