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UOB to issue $400 mil perpetual capital securities with 4.25% fixed distribution rate

Felicia Tan
Felicia Tan6/28/2022 08:01 AM GMT+08  • 1 min read
UOB to issue $400 mil perpetual capital securities with 4.25% fixed distribution rate
The perpetual capital securities are intended to qualify as Additional Tier 1 regulatory capital for the bank. Photo: Bloomberg
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United Overseas Bank (UOB) says it intends to issue $400 million worth of perpetual capital securities that will be first callable in 2027.

The SGD-denominated perpetual capital securities will be drawn down under the US$30 billion ($41.57 billion) global medium-term note programme.

The perpetual capital securities will bear a fixed distribution rate of 4.25% per annum, subject to a reset on Oct 5, 2027, and then every five years thereafter to a rate equal to the then-prevailing five-year Singapore Overnight Rate Average Overnight Indexed Swap (SORA-OIS) plus the initial spread of 1.47%.

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