UOB prices US$2 billion in US dollar-denominated multi-tranche bond

PRNewswire

Singapore, March 27: UOB has priced US$2 billion in a US dollar-denominated multi-tranche bond. This comprises three-year Fixed-Rate Note (FXD), three-year Floating-Rate Note (FRN) and five-year FRN tranches with pricing set at Treasuries plus 40 basis points, SOFR plus 58 basis points and SOFR plus 65 basis points, respectively.

UOB re-entered the US dollar market and took advantage of recent constructive markets and stable window with no key market-moving economic events or holidays and ahead of US President Trump's proposed tariffs on 2 April 2025. UOB also capitalised on the recent strong demand for front end floating rate and fixed rate senior paper from high quality bank issuers. This issuance further demonstrates UOB's commitment to reengage with global USD bond investors, particularly with US investors.

UOB achieved tight pricing and an upsized transaction due to robust market demand that is well-balanced across the three tranches. The Bank also achieved the tightest spread for 3-year FXD and FRN amongst APAC ex-Japan and ex-China USD FIG senior notes since early 2022.

Koh Chin Chin, Head of Group Treasury, Research and Customer Advocacy, UOB, said, "The USD market continues to be one of our deepest liquidity sources. After a brief hiatus, we set out to re-engage the widest global investor community and establish new benchmarks across different formats and tenors. Notwithstanding the growing headwinds, it has been very heartening to see such a solid reception from our real money investors, allowing us to surpass our size expectations at very competitive funding levels."

Salient points about this offering

* Nimble in navigation around recent volatility and geopolitical situation; intraday execution to minimise overnight risks

* Offered FXD and FRN tranches catering to both yield and spread buyers; offered 3-year and 5-year tenors catering to a larger group of target investors with different tenor preferences/requirements

* Zero new issue concession in both 3-year FXD and 3-year FRN tranches, negative 5 bp new issue concession in 5-year FRN tranche

* Strong momentum from Asian investors, allowing the Bank to tighten pricing by 25 bp for all tranches from initial pricing guidance to final pricing

* Global distribution targeting all pools of USD liquidity globally, including 59% to US investors for the 3-year FRN and 40% to US investors for the 3-year FXD

Distribution Statistics

* 3-year FXD tranche

- Final orderbook >US$1.7bn, with Asia Rs 54%, US Rs 40% and EMEA Rs 6%

- Robust investor demand from Banks/Financial Institutions Rs 43%, Fund Managers Rs 24%, Central Banks/Official Institutions/Insurance Rs 24%, Corporates Rs 6%, Others Rs 3%

* 3-year FRN tranche

- Final orderbook >US$1.3bn, with Asia Rs 35%, US Rs 59% and EMEA Rs 6%

- Robust investor demand from Banks/Financial Institutions Rs 37%, Fund Managers Rs 42%, Central Banks/Official Institutions/Insurance Rs 19%, Others Rs 2%

* 5-year FRN tranche

- Final orderbook > US$570m, with Asia Rs 93%, US Rs 2% and EMEA Rs 5%

- Robust investor demand from Banks/Financial Institutions Rs 61%, Fund Managers Rs 11%, Central Banks/Official Institutions/Insurance Rs 27%, Others Rs 1%

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