United Overseas Bank (UOB) U11 % , on March 9, announced that its Sydney branch has priced A$750 million ($669.3 million) worth of floating rate senior unsecured notes due 2026.
The floating rate senior unsecured notes have a coupon rate of the three-month bank bill swap reference rate plus 0.73% per annum (p.a.) that’s payable quarterly in arrear.
At the same time, UOB Sydney has priced A$750 million worth of senior unsecured notes with a 4.642% p.a. coupon rate. The senior unsecured notes are also due 2026.
The notes will be issued under the US$30 billion ($40.6 billion) global medium term note programme and are expected to be rated Aa1 by Moody’s and AA- by Standard & Poor’s and Fitch Ratings.
The notes are expected to be issued on March 16. They will both mature on March 16, 2026.
Australia and New Zealand Banking Group Limited (ANZ), Bank of China Limited, Singapore Branch, Commonwealth Bank of Australia, Westpac Banking Corporation and UOB have been appointed as the joint lead managers and bookrunners for the notes.
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“This is our first international benchmark offering this year and we’re very pleased with the reception we were met with, not only from our core investor base, but also from new investors both domestically in Australia and globally. The Australian dollar (AUD) market not only offers us very valuable diversity, but volumes now are comparable to other international markets. Our commitment to accessing this market as one of our core sources of funding only continues to grow," says Koh Chin Chin, head of group treasury and research at UOB.
Shares in UOB closed 2 cents higher or 0.07% up at $29.47 on March 8.