UOB prices US$500m covered bonds due 2022 at 1.625%

UOB shares closed at $24.78 on Thursday (Aug 29), up 0.37 cent or 1.5 per cent.
UOB shares closed at $24.78 on Thursday (Aug 29), up 0.37 cent or 1.5 per cent.PHOTO: ST FILE

SINGAPORE - United Overseas Bank (UOB) is issuing US$500 million (S$694 million) of three-year covered bonds due 2022 at a fixed coupon of 1.625 per cent.

The bonds were sold at 99.694 per cent of the principal amount and are expected to be issued on Sept 5, 2019 as the seventh series under the US$8 billion Global Cover Bond programme.

They will be guaranteed as to payments of interest and principal by Glacier Eighty. The guarantee is also secured by a portfolio of loans purchased by Glacier Eighty from UOB and other Glacier Eighty assets.

The covered bonds are expected to be rated Aaa by Moody's Investors Service and AAA and Standard & Poor's Rating Services.

UOB, Credit Suisse Securities (Europe), HSBC, ING Bank NV, Singapore Branch and UBS AG London Branch have been appointed as lead managers.

UOB shares closed at $24.78 on Thursday, up 0.37 cent or 1.5 per cent.