UOB prices Singapore's first capital securities with reset coupon rate that references SORA Overnight Indexed Swap rate

UOB announced on Jan 8 that it has successfully priced Singapore’s first capital securities with a reset coupon rate that references the Singapore Overnight Rate Average Overnight Indexed Swap (SORA-OIS) rate.

The reset coupon rate of UOB’s perpetual, non-call five year additional Tier 1 (AT1) securities on the first call date will reference the five-year SORA-OIS rate instead of the five-year Swap Offer Rate (SOR) interest rate swap (IRS) that had served as the benchmark reference rate in the market.

The securities are priced at a coupon of 2.25% per annum, 181 basis points above the prevailing five-year SORA-OIS as at Jan 7.