Wednesday, August 19, 2015

OCBC prices $500 mil non-convertible perps, its first Basel III additional Tier 1 capital instrument

Oversea-Chinese Banking Corporation has priced $500 million of non-cumulative non-convertible perpetual capital securities.

The capital securities are intended to qualify as Additional Tier 1 capital of the bank under the Monetary Authority of Singapore’s Basel III framework.

The net proceeds from the issue of the capital securities will be used for the general corporate purposes.

To be issued on Aug 25, the capital securities may be redeemed at the option of the bank on or after Aug 25, 2020.

They are priced at 100% and the holder to receive distributions at a fixed rate of 3.80% per annum.

OCBC Bank is the sole bookrunner for the issue.

Citigroup Global Markets Singapore and J.P. Morgan (S.E.A.) are joint lead managers.

The securities are expected to be rated A3 by Moody’s Investors Service, BBB- by Standard & Poor’s Rating Services and BBB by Fitch Ratings.

OCBC closed 1% lower at $9.50 on Tuesday.

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