Global Market: Singapore's OCBC taps global debt market with £1 billion bond issue

Oversea-Chinese Banking Corp (OCBC), Singapore’s second-largest bank, has priced £1 billion ($1.36 billion) of covered bonds due in 2029, with the proceeds to be used for general corporate purposes.

The issuance is being carried out under OCBC’s $10 billion Global Covered Bond Programme. The bank had priced €500 million of fixed-rate covered bonds due in 2029 under the same programme in May.

The latest bonds will carry interest at compounded daily SONIA plus 0.48% per annum, payable quarterly in arrears. SONIA is the benchmark overnight interest rate administered by the Bank of England.


OCBC said the bonds are expected to receive an Aaa rating from Moody’s and an AAA rating from Fitch Ratings, Reuters reported.

Barclays, Lloyds Bank Corporate Markets, RBC Europe, HSBC Singapore and TD Bank are among the joint managers for the issuance, the bank said.

The bonds are expected to be issued on August 26 and listed on the Singapore Exchange on August 27.

The latest fundraising comes as OCBC continues to tap international debt markets to diversify its funding base and strengthen access to longer-term financing.

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