UOB prices US$1.4 billion floating rate covered bonds due 2030
They are expected to be issued on Aug 25 and listed on the Singapore Exchange
UOB has priced US$1.4 billion floating rate covered bonds with a due date of February 2030, according to a statement released on Wednesday, August 19. The bonds are set to be issued on August 25 and will be listed on the Singapore Exchange. The interest rate on the bonds will be compounded daily based on the Sterling Overnight Index Average (Sonia) rate, plus an additional 0.49% per annum, payable quarterly in arrears.
The Sonia rate is the average of interest rates banks pay to borrow sterling overnight from other financial institutions and institutional investors. The bonds' interest and principal payments are guaranteed by Glacier Eighty, secured by a portfolio of loans purchased by the company and other assets. These bonds, the 17th series under UOB's global covered bond program, are expected to receive ratings of "Aaa" from Moody's Investors Service and "AAA" from Standard & Poor's Rating Services.
UOB, alongside Bank of Montreal, HSBC Singapore, RBC Europe, and the Singapore branch of Standard Chartered, has been appointed as the joint lead managers for the bonds.
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