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SINGAPORE: OCBC Bank said Wednesday it is issuing US$500 million worth of fixed rate subordinated notes.
The 10-year notes are expected to qualify as lower tier two regulatory capital and will carry an interest rate of 4.25 per cent a year for the first five years.
The bank said that if the notes are not redeemed or purchased and cancelled after five years, the interest rate will then be reset to a fixed rate equivalent to the aggregate of the five-year US Treasury benchmark rate plus 2.997 per cent.
The notes are issued under OCBC's S$4-billion debt instrument programme.
They have been rated Aa2 by Moody's and A plus by Fitch Ratings and are expected to be listed on the SGX next Thursday.
The offering will be targeted at Asian and European-based institutional and sophisticated investors.
- CNA/yb
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