United Overseas Bank raised S$850 million $670 million of tier-1 capital last night, testing investor appetite for new-look perpetual securities that feature greater loss-absorption and can be written down at regulators’ discretion.
The leads attracted a good response during the day, allowing them to raise S$850 million and to print 10bp inside the initial 5% guidance, despite the unfamiliar structure. Indeed, demand is said to have reached S$2 billion from around 80 accounts.
The bonds, which are callable after five years and every five years thereafter, were sold mostly to Singapore private bank accounts, which benefited from a 25bp rebate.
Overall, 74%...
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