UOB Sydney Branch has priced A$1 billion in four-year senior unsecured notes due 2028. The notes were priced on Aug 2 at the Bank Bill Swap Rate (BBSW) plus 0.74%. The issuance is the largest conventional AUD single-tranche senior bond from a Singaporean Issuer with the tightest spread for a benchmark-sized four-year AUD transaction from an Asian bank, and priced 1-2 bps inside a Singaporean bank's fair value and flat to inside theoretical new major bank pricing.
UOB had made an announcement to investors immediately after the Bank's results (1H2024) release on Aug 1. This provided a first-mover advantage in light of more anticipated supply as more issuers globally are expected to tap the AUD senior market amidst peak redemptions in August.
The Bank received strong indications of interest on Aug1 with the largest price tightening during the bookbuild (6 bps from initial pricing guidance (IPG) to final pricing) for an AUD transaction over A$500 million. The book building undertaken on Aug 2 allowed UOB to achieve its volume and pricing aspirations despite the broader risk-off tone in the US and Asia.
This is the second time UOB is tapping the AUD market this year. The Bank issued A$1.25 billion in dual-tranche three-year unsecured notes in April.
