OCBC Bank prices US$1b of fixed rate subordinated notes

The notes are priced at 99.905% and will bear a coupon of 3.15% per annum.

Oversea-Chinese Banking Corporation Limited announced that it has priced US$1 billion of fixed rate subordinated notes under its US$10 billion Global Medium Term Note Program.

The net proceeds from the issue of the Notes will be used for general corporate purposes of OCBC Bank.

The notes are expected to qualify as Tier 2 capital of OCBC Bank and be eligible for transitional treatment under the Monetary Authority of Singapore’s Basel III framework, from 1 January 2013 onwards.

Call date will be on 11 March 2018. If the notes are not redeemed, the interest rate from the call date to the maturity date on 11 March 2023 will be reset to a fixed rate per annum equal to the aggregate of the then-prevailing 5-year U.S. dollar swap rate and 2.279%.

OCBC Bank, J.P. Morgan (S.E.A.) Limited and Merrill Lynch (Singapore) Pte. Ltd. acted as joint lead managers and joint bookrunners for the issue.

Approval in-principle has been received for the listing of the notes on the Singapore Exchange Securities Trading Limited, and the notes are expected to be listed on the SGX-ST on 12 September 2012.