SINGAPORE, Dec 2 (Reuters) - United Overseas Bank UOBH.SI has priced a £750 million ($990.45 million) floating-rate covered bond due June 2029, its second covered bond transaction in Europe in two weeks, the bank said on Tuesday.
UOB is Singapore and Southeast Asia's third largest bank by assets.
The bonds were priced at 52 basis points over the Sterling Overnight Index Average or SONIA, which the bank said was the tightest level this year for a non-U.K. issuer on a curve adjusted basis.
Final orders totalled about £850 million, allowing UOB to increase the deal from an initial £500 million. The bonds, backed by mortgage collateral, pay compounded daily SONIA plus 0.52% per annum, on a quarterly basis, according to the bank.
The transaction follows UOB's 850 million euros covered bond issued last week. Sterling investors showed interest following that euro deal, the bank said.
The bank said the deal resulted in savings of about 40 basis points compared with its sterling senior unsecured bonds and 15 basis points versus its U.S. dollar senior unsecured bonds.
UK investors accounted for 68% of allocations, Asia 16%, and Europe and North America 15%. Asset managers took 58%, with bank treasuries making up the rest.
The bonds, issued under UOB's $15 billion global covered bond programme, are expected to be rated Aaa by Moody's and AAA by S&P. Glacier Eighty Pte Ltd will guarantee payments, secured by a portfolio of loans.
The bonds are scheduled to be issued on December 8 and mature on or near June 8, 2029. Application will be made for listing on the Singapore Exchange.
($1 = 0.7572 pounds)
(Reporting by Yantoultra NguiEditing by Shri Navaratnam)
((Yantoultra.Ngui@thomsonreuters.com;))
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