UOB begins capital raising with $750m perpetual capital securities offer

United Overseas Bank (UOB) has begun capital raising with the launch and pricing of $70m of non-cumulative and non-convertible perpetual capital securities; the capital securities have a fixed distribution rate of 4% and are intended to qualify as Additional Tier 1 capital under the Basel III rules.

It has a fixed distribution rate of 4%.

United Overseas Bank has launched and priced $750 million of non-cumulative and non-convertible perpetual capital securities.

The capital securities have a fixed distribution rate of 4% and are intended to qualify as Additional Tier 1 capital under the Basel III framework adopted by the Monetary Authority of Singapore.

The perpetual securities may be redeemed at the option of UOB on 18 May 2021, or any distribution payment date thereafter or upon the occurrence of certain redemption events.

UOB, Credit Suisse, HSBC and Standard Chartered have been mandated as joint lead managers and bookrunners for the issue

UOB said that the issue was approximately 3.1 times subscribed, with an order book totaling S$2.3 billion. In terms of investor type, distribution was 35% to insurance companies and pension funds, 12% to fund managers, 50% to private banks, and 3% to public sector entities.





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