UOB prices A$1.5b dual tranche 3-year senior unsecured bond

The notes are expected to be issued on 16 March 2023.

UOB has priced its A$1.5b dual tranche 3-year senior unsecured bond, the largest AUD bond on record from an Asia ex-Japan bank, the bank said in a bourse filing.

The first tranche is an A$750m floating rate tranche, priced with the 3 month Bank Bill Swap Reference Rate plus 0.73% per annum, payable quarterly in arrear.

The second tranche is an A$750m fixed rate senior unsecured notes, priced 4.642% per annum and payable semi-annually in arrear.

In a press announcement, UOB said that the notes offer the “tightest pricing YTD in AUD for any 3-year FI bond, including from major banks.”

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“This is our first international benchmark offering this year and we’re very pleased with the reception we were met with, not only from our core investor base, but also from new investors both domestically in Australia and globally,” said Koh Chin Chin, head of group treasury and research, UOB.

“The AUD market not only offers us very valuable diversity, but volumes now are comparable to other international markets. Our commitment to accessing this market as one of our core sources of funding only continues to grow,” she added.

The issue date of the notes is expected to be 16 March 2023, whilst maturity is on 16 March 2026.