Saturday, 28 May 2022

UOB prices $1.6 billion in covered bond

5 min read

UOB has priced a EUR1.5 billion ($1.6 billion) covered bond.

Koh Chin Chin, head of group central treasury unit of UOB said, “UOB has always been committed to maintaining a presence in the euro covered bond market. We capitalised on the anticipated strong demand for euro covered bonds, which are seen as a safe haven instrument, to print the largest transaction to-date from Singapore despite the challenging market backdrop. The strong support from our investors is testament to their confidence in the credit quality of UOB and enables the Bank to maintain access to capital markets liquidity”.

We also wish to share the transaction highlights for your reference:
Opportune issuance by UOB, the most active Singapore bank in the covered bond market

i.  favourable relative value proposition for EUR covered bonds versus government bond yields;
ii.  flight to quality/safe haven;
iii. strong front-end defensive bid to access the covered bond market ahead of the European Central Bank meeting.

Strong outcome with a rare 3-year tenor and achieved large size of EUR1.5 billion ($1.6 billion), despite challenging markets and competing primary supply

Very high quality investor base; one of the largest orderbooks from Singapore

Achieved tight pricing; efficient use of covered bond collateral

Re-disseminated by The Asian Banker

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