Oversea-Chinese Banking Corp priced a $1 billion 10-year Basel III Tier 2 subordinated note late on Thursday, illustrating the Singapore bank’s ongoing push to boost capital in order to replace maturing old-style subordinated debt.
The 144AReg-S registered note is the tightest bank capital instrument to be priced in Asia ex-Japan, buoyed by strong demand from institutional investors as well as a favourable interest rates environment, a source close to the transaction told FinanceAsia. This is the second time OCBC has issued a Basel III-compliant note this year.
“I can’t think of any other deal that has come inside 200bp above Treasuries from the...
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