OCBC prices £1 billion floating rate covered bonds due 2029
They are expected to be issued on Aug 26 and listed on the Singapore Exchange on Aug 27
OCBC has priced £1 billion in floating rate covered bonds with a due date of 2029, according to a statement released on Thursday, August 20. The bonds will carry an interest rate determined by the daily Sterling Overnight Index Average (Sonia) rate, plus an additional 0.48% per annum, payable quarterly in arrears. The Sonia rate represents the average interest rate that banks charge for borrowing pounds sterling from other financial institutions and institutional investors overnight.
The bonds, part of OCBC's US$10 billion global covered bond programme, will generate net proceeds to be utilized for general corporate purposes. The bonds are anticipated to be issued on August 26 and listed on the Singapore Exchange on August 27. They are expected to receive ratings of Aaa from Moody's Investors Services and AAA from Fitch Ratings.
Red Sail, backed by a portfolio of assets acquired from OCBC, will guarantee the bonds' interest and principal payments. The transaction was facilitated by Barclays Bank, Lloyds Bank Corporate Markets, RBC Europe, HSBC (Singapore Branch), and The Toronto-Dominion Bank as joint lead managers.
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