United Overseas Bank (UOB) has successfully priced a S$850m Perpetual Non-Call 7-year Additional Tier 1 bond, offering a 3% coupon. This marks the first Singapore dollar Additional Tier 1 (AT1) bond from a Singapore bank since January 2024. The issuance attracted significant interest from 96 local and offshore fixed income accounts, with the order book oversubscribed by more than 2.4 times, reaching over S$2 billion.
The bond issuance, on par with UOB’s previous AT1 issuance in January 2023, is the joint-largest from a Singapore bank post-COVID-19. Institutional investors accounted for 50% of the demand, the highest for a Singapore dollar AT1 since 2020, whilst offshore institutional investors contributed 26% of the orders. The bond’s 3% coupon translates to a reset spread of +94 basis points over the 7-year Singapore Overnight Rate Average (SORA), noted as the tightest reset spread in recent SGD bond market history.
Koh Chin Chin, Head of Group Treasury at UOB, commented, “We are proud to return to the SGD bond market with our S$850m AT1 issuance at 3.00%. The strong demand highlights investors’ confidence in UOB, with our notable offshore institutional participation capturing the growing appetite for SGD instruments.”
The bonds are expected to be rated Baa1 by Moody’s and BBB+ by Fitch. The issuance is part of UOB’s US$30b Global Medium Term Note Programme, The Perpetual Capital Securities is anticipated to be listed on the Singapore Exchange on 21 January 2026.
