OCBC prices S$500M perpetual notes

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OCBC has priced S$500 million in perpetual capital securities first callable in 2027 at 3.9 percent, the Singapore bank said in a filing to SGX Thursday.

The announcement confirms an article from Shenton Wire Wednesday.

The net proceeds are earmarked for general corporate purposes, the bank said.

The securities can be redeemed starting from 8 June 2027, matching the first reset date, or if the securities no longer qualify as additional tier 1 capital, the filing said. If the securities aren’t redeemed on the first reset date, the distribution rate will reset to a fixed rate at the then-prevailing five-year SORA-OIS and an initial spread of 1.416 percent, with additional reset dates every five years afterward, the filing said.

The securities are expected to be rated Baa1 by Moody’s Investors Service, BBB-minus by Standard & Poor’s Ratings Services and BBB-plus by Fitch Ratings, OCBC said.

Credit Suisse (Singapore), OCBC Bank and Standard Chartered Bank (Singapore) are the joint lead managers and bookrunners for the issuance, the filing said.

The securities are expected to be listed on SGX on 9 June, the filing said.