UOB prices A$1 billion in bonds, the largest-ever conventional single-tranche issuance by a Singapore issuer in Australia

SINGAPORE, Aug. 5, 2024 /PRNewswire/ -- UOB Sydney Branch has priced A$1 billion in four-year senior unsecured notes due 2028. The notes were priced on Friday (2 Aug) at the Bank Bill Swap Rate (BBSW) plus 0.74 per cent. 

The issuance is the largest conventional AUD single-tranche senior bond from a Singaporean Issuer. 

UOB had made an announcement to investors immediately after the Bank's results (1H 2024) release on 1 Aug. This provided a first mover advantage in light of more anticipated supply – more issuers globally are expected to tap the AUD senior market amidst peak redemptions in August. 

The Bank received strong indications of interest on 1 Aug. The book building undertaken on 2 Aug allowed UOB to achieve its volume and pricing aspirations despite the broader risk-off tone in the US and Asia. 

This is the second time UOB is tapping the AUD market this year. The Bank issued A$1.25 billion in dual-tranche three-year unsecured notes in April. 

Ms Koh Chin Chin, Head of Group Treasury, Research and Customer Advocacy, UOB, said, "The AUD market is integral to our funding strategy. This year in fact, it has been our largest pool of international benchmark capital. Our commitment to this market remains; to provide our investors liquidity across the tenor curve, and so it was pleasing to see the strong appetite for these four-year bonds despite the volatile market backdrop, and just three months after our similarly successful three-year transaction in April."

Salient points about this offering

• Largest conventional AUD single-tranche bond from a Singaporean issuer. 
• Tightest spread for a benchmark sized four-year AUD transaction from an Asian bank.
• Priced 1-2 bps inside Singaporean bank fair value and flat to inside theoretical new major bank pricing.
• Largest price tightening during the bookbuild (6 bps from initial pricing guidance (IPG) to final pricing) for an AUD transaction over A$500 million.

Distribution statistics 

Final orderbook in excess of A$1.59 billion from 55 investors. 

Geography:
Asia - 75%
Australia - 22%
Europe, the Middle East and Africa - 3%

Type:
Asset Managers/Fund Managers/Insurance - 10%
Banks - 76%
Middle Markets - 2%
Private Banks/Hedge Funds/Others - 12%

The notes are expected to be issued on 8 Aug. ANZ, Bank of China, Commonwealth Bank of Australia, UBS, Westpac and UOB have been appointed as the joint lead managers and bookrunners.

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SOURCE UOB