OCBC pricing 10-year USD bonds: Client note

OCBC building in Signapore’s central business districtOCBC building in Signapore’s central business district. Photo taken pre-Covid.

OCBC is pricing 10-year U.S. dollar-denominated benchmark tier-two fixed-rate subordinated notes, according to a client note seen by Shenton Wire Wednesday.

A benchmark size suggests the offering will be at least US$250 million.

The initial pricing guidance is for 200 basis points over the five-year U.S. Treasury yield, with landing guidance of 150 to 165 basis points over the five-year U.S. Treasury yield, the client note said. The five-year U.S. Treasury yield was around 3.01 percent as of 3:40 p.m. SGT.

The bond’s interest rate will be fixed for the first five years, then will be at the prevailing five-year U.S. Treasury yield, plus the initial spread, the client note said.

The first call date will be 15 June 2027, while the maturity date is 15 June 2032, the client note said.

The joint lead managers and the joint bookrunners are Barclays, Citigroup, J.P. Morgan and OCBC Bank, the client note said.

The proceeds are earmarked for general corporate purposes, the client note said.