Oversea-Chinese Banking Corp (OCBC), Singapore's second-largest bank, has successfully priced £1 billion ($1.36 billion) of covered bonds due in 2029. According to reports from Reuters, the bonds are being issued under OCBC's $10 billion Global Covered Bond Programme. The latest issuance follows the bank's previous €500 million fixed-rate covered bonds due in 2029, which were priced in May under the same programme. The proceeds from this latest fundraising are specifically earmarked for general corporate purposes.
The new bonds will carry interest at compounded daily SONIA plus 0.48% per annum, payable quarterly in arrears. As reported by Reuters, OCBC expects the bonds to receive an Aaa rating from Moody's and an AAA rating from Fitch Ratings. The bonds are scheduled to be issued on August 26 and listed on the Singapore Exchange on August 27. The floating-rate structure is tied to the Bank of England's overnight rate benchmark, providing OCBC with cost-effective funding flexibility.
The issuance is being managed by a consortium of major financial institutions, including Barclays, Lloyds Bank Corporate Markets, RBC Europe, HSBC Singapore and TD Bank. According to Reuters, the bonds are being issued to diversify OCBC's funding base and strengthen access to longer-term financing in international markets. The joint management structure ensures comprehensive market coverage and efficient execution of the fundraising initiative.
The latest fundraising represents OCBC's continued strategy to tap international debt markets for corporate purposes. As reported by Reuters, this initiative forms part of the bank's broader efforts to diversify its funding sources and enhance its access to longer-term financing in global markets. The £1 billion issuance demonstrates the bank's commitment to maintaining a robust capital structure through international debt markets, with the proceeds specifically designated for general corporate operations to support its ongoing business requirements.
