UPDATE: UOB Sydney branch prices A$900M 5-year notes

UOB logoPhoto by Leslie Shaffer

This item was originally published on Friday, 18 February 2022 at 9:29 a.m. SGT; it has since been updated to include more details.

UOB said Friday its Sydney branch has priced A$900 million five-year senior unsecured floating rate notes due 2027.

The coupon will be the three-month bank bill swap reference rate plus 0.72 percent a year, payable quarterly, UOB said in a filing to SGX. The notes will trade in Australian dollars, the filing said.

In a separate statement UOB said the transaction was the bank’s largest single issuance and the largest for a Southeast Asian issuer as well as the largest ever single-tranche Australian dollar issuance from Asia ex-Japan.

The order book for the offering was A$1.16 billion, the statement said.

“Since October 2020, we have been pre-financing actively in the market ahead of macroeconomic and structural headwinds. Together with the latest print of A$900 million, we have achieved a total issuance volume of A$3.6 billion during this period. We are thankful for the strong support and repeated demand across both domestic and regional investors,” Koh Chin Chin, head of the group central treasury unit at UOB, said in the press statement Friday.

Moody’s Investors Services is expected to rate the notes at Aa1, Standard & Poor’s Rating Services is expected to rate them at AA-minus and Fitch Ratings’ rating is expected to be AA-minus, the filing said.

The notes will be issued under the bank’s US$15 billion global medium term note program, the filing said.

ANZ Banking Group, Commonwealth Bank of Australia and UOB were appointed the joint lead managers and bookrunners for the notes, the filing said.

The notes’ issue date is expected to be 24 February, the filing said.