SINGAPORE - United Overseas Bank (UOB) has priced $750 million of 3.58 per cent additional tier one perpetual capital securities at an initial spread of 1.795 per cent above the seven-year Singapore dollar swap offer rate or SOR.

The issue price is on par with the principal amount of the perpetual securities, and interest payment will be made semi-annually.

The securities may be redeemed by UOB on July 17, 2026, seven years after the expected issue date of July 17, 2019, or on any distribution payment date thereafter.

They are expected to be rated Baa1 by Moody's Investors Service, BBB- by Standard & Poor's Rating Services and BBB by Fitch Ratings, said UOB.

Standard & Poor's has already assigned the securities its BBB- rating, while Fitch Ratings have also confirmed their BBB rating, with final rating "subject to the receipt of final documentation".

The securities are issued under UOB's US$15 billion global medium term note programme.

UOB is the sole global coordinator for the securities and a joint lead manager.

Other lead managers are Australia and New Zealand Banking Group, Standard Chartered Bank Singapore, Hongkong and Shanghai Banking Corporation (HSBC) Singapore and UBS AG Singapore.

UOB shares closed up $0.19 or 0.7 per cent at $26.41 on Wednesday.