OCBC issues $1 billion short-dated notes

Close on the heels of its rival Singapore lenders, OCBC raised $1 billion of unsubordinated debt late on Tuesday. The sale of three-year notes was only the second time the bank has issued bonds in the US under the SEC’s Rule 144a.

The short-dated tenor was chosen to fit OCBC’s asset-liability management strategy although the market for five-year paper had become a little crowded following other primary issues by similar credits during the past couple of weeks.

The issue’s 1.625% coupon was the lowest ever by a bank in Asia ex-Japan. The notes were re-offered at 99.799 to yield 1.694% to a maturity date of...