OCBC pricing perpetual securities: Client note

OCBC branch in SingaporeOCBC branch in Singapore. Photo taken pre-Covid.

OCBC is pricing subordinated unsecured perpetual capital securities intended to qualify as tier 1 capital, according to a client note seen by Shenton Wire Wednesday.

The initial pricing guidance is in the 4.25 percent area, but it is possible the final coupon will be below 4 percent, the client note said.

“Expect overwhelming demand and very tight allocation for this issuance,” the client note said.

If OCBC doesn’t call the notes, the distribution will reset on the first reset date in five years at the prevailing five-year SORA-OIS benchmark rate plus the initial spread, with no step-up, the client note said.

The joint lead managers and bookrunners for the securities are Credit Suisse, OCBC Bank and Standard Chartered Bank, the client note said.

The expected issue rating is Baa1 by Moody’s Investors Services, BBB-minus by S&P Ratings, and BBB-plus by Fitch Ratings, the client note said. OCBC is rated Aa1 by Moody’s, AA-minus by S&P and AA-minus by Fitch, the client note said.