SINGAPORE - OCBC Bank said on Thursday (March 8) that it has priced £250 million (S$457 million) floating rate covered bonds due 2023.

The covered bonds will bear interest at the three-month sterling Libor reference rate plus 0.27 per cent per annum floating rate payable quarterly.

Libor is the interest rate at which selected banks borrow funds in British pound sterling from one another with a maturity of three months.

The bonds are guaranteed by a portfolio of assets purchased by Red Sail from OCBC Bank and other assets of Red Sail.

The bonds are also expected to be rated Aaa by Moody's and AAA by Fitch Ratings.

The covered bonds are expected to be issued on March 14, and listed on the Singapore Exchange on March 15.

The net proceeds from the issue of the covered bonds will be used for the general corporate purposes of OCBC Bank.

Barclays Bank, BNP Paribas, Credit Suisse and OCBC were the joint lead managers for this issue.