NEW DEAL: UOB SGD Bench AT1 Perp NC5, IPT 4.25% Area
Issuer: United Overseas Bank Ltd.
Reg S
Issuer ratings: Aa1/AA-/AA-
Exp. issue ratings: A3/–/BBB
Distribution payment: Fixed rate, payable semi-annually in arrear, fully discretionary, on a non-cumulative basis
Reset mechanism: If not called by issuer, the fixed distribution resets at the first call date and every 5 years thereafter at the prevailing 5-year SGD SOR plus the initial margin with no step-up
Dividend stopper: Permitted
Loss absorption event: Earlier of the regulator notifying the issuer in writing (i) that a write-off is necessary or (ii) of its decision to make a public sector injection of capital or equivalent support, (in each case) without which the issuer would become non-viable
Write down (partial allowed): (i) Upon occurrence of a Loss Absorption Event, cancellation of the accrued distributions and if insufficient, permanent write-down (partial or in full) of the prevailing principal amount (ii) Write-down amount is ascertained by issuer (and the Regulator is satisfied) such that the amount written-off will be sufficient to ensure that issuer ceases to be non-viable (iii) Write-down pro rata with other Parity Tier 1 instruments that include loss absorption features
Issuer redemption: At first call date in year 5 and any distribution payment date thereafter, subject to regulatory approval
Early redemption: Upon occurrence of Change of Qualification or Taxation Events, subject to regulatory approval
UOP: GCP
JBRs: UOB, CS, HSBC, StanChart
more than a coincidence this is coming out same day as Socgen T2? For similar yield, would you rather buy a Tier 2 of a somewhat weaker bank, or a better bank but placed lower in the capital structure and with risk of coupon misses?
Unlike ocbc 4% Perpetual which is trading 1.5% premium, UOB 4% Perpetual is now trading at par. May I know why UOB PERPETUAL is trading in low price.
OCBC Perpetual is callable on 17 Jan 2018. Last price 100.91 (3.42% to call). UOB 4% Perpetual is callable on 18 May 2021 last price 100 (4% to call).
OCBC Perpetual is callable on 17 Jan 2018. Last price 100.91 (3.42% to call). UOB 4% Perpetual is callable on 18 May 2021 last price 100 (4% to call).
Pls compare to ocbc 4% Perpetual just issued recently. Call date is not 2018 .
We cannot find the OCBC 4% perpetual except for the one that has a call date in 2018. Perhaps you can provide the ISIN of the bond.
There is an OCBC USD bond which is a sub that pays 4% as well.