UOB’s Sydney branch prices A$500 million three-year notes

UOB branch at Tiong Bahru PlazaUOB branch at Tiong Bahru Plaza. Image taken pre-Covid.

United Overseas Bank said Wednesday its Sydney branch plans to issue A$500 million (S$477.57 million or US$351.02 million) of floating rate notes due July 2022 under the Singapore bank’s US$15 billion global medium-term note program.

The notes will have a coupon rate set at the three-month bank bill swap reference rate plus 0.53 percentage point, UOB said in a filing to SGX.

The ratings on the notes are expected to be Aa1 from Moody’s Investors Services, AA-minus from Standard & Poor’s Rating Services and AA-minus by Fitch Ratings, UOB said.

Moody’s considers an Aa rating to indicate high quality and very low credit risk, while the one means the obligation ranks at the higher end of its rating category.

S&P’s AA rating means the obligation differs only slightly from the highest rating of AAA, with the issuer’s ability to meet commitments considered very strong, while the minus denotes the relative standing in the category.

For Fitch, AA indicates very high credit quality with very low default risk, with the minus indicating the relative standing within the category.

The issue date is expected to be 25 July, UOB said.

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