United Overseas Bank, or UOB, priced US$600 million of 3.75 percent subordinated notes due 2029 and callable in 2024, the bank said in a filing to SGX before the market open on Tuesday.
The issue price will be at 99.657 percent of the principal amount of the notes, UOB said, adding that the issue date is expected to be 15 April.
If the notes are not redeemed on the first call date, the interest rate will be reset to a fixed rate of the five-year U.S. Treasury rate in 2024 plus a spread of 1.50 percent, UOB said.
UOB said it expected the notes would be rated A2 by Moody’s Investors Service, BBB-plus by Standard & Poor’s, and A-plus by Fitch Ratings.
The notes will be issued under UOB’s US$15 billion global medium-term note program, the filing said.
UOB, Citigroup Global Markets Singapore, Credit Suisse (Singapore), HSBC and Standard Chartered Bank were appointed joint lead managers for the notes, the statement said.