SINGAPORE'S United Overseas Bank (UOB) said on Thursday it intended to issue two euro-covered bonds totaling €1 billion ($1.17 billion) under its $15 billion global covered bond program.
This is considered to be the first such offering to be executed by an Asian issuer, according to UOB.
Southeast Asia's third-largest bank by assets said it planned to issue euro fixed-rate covered bonds with an issue size of €500 million ($582.80 million) at a coupon rate of 3.118 percent per annum payable annually in arrears.
The bonds — with two-year and five-year tenors — were offered under the lender’s $15 billion Global Covered Bond Program to capture demand from a wider range of investors while at the same time optimizing maturity management for the bank.
The lender also said the offering saw an “exceptionally strong” demand among investors, which underscored a strong support from high-quality institutional investors.
The covered bonds are expected to mature on Sept. 8, 2028.
In a separate statement, the lender said it intended to issue another euro fixed-rate covered bond with an issue size of €500 million ($582.80 million), with a maturity date of Sept. 8, 2031.
The coupon rate for the bond maturing in 2031 is 3.342 percent per annum payable annually in arrears.
Both covered bonds are expected to be rated "Aaa" by Moody's Investors Service and "AAA" by Standard & Poor's Rating Services, UOB said.