United Overseas Bank (UOB) has successfully priced a €1b dual-tranche covered bond, marking its first euro-denominated covered bond issuance of 2026. The transaction, which includes €500m 2-year fixed-rate bonds and €500m 5-year fixed-rate bonds, attracted significant investor interest, with combined order books peaking at over €4.25b within four hours of launch.
The issuance is notable as it represents the first dual-tranche euro covered bond offering by an Asian issuer and the first 2-year euro covered bond from an Asia-Pacific issuer since 2023. The strong demand allowed UOB to tighten pricing significantly, with the 2-year tranche repriced by 8 basis points (bps) and the 5-year tranche by 6 bps from initial guidance.
The dual-tranche structure enabled UOB to appeal to a diverse range of investors, including bank treasuries, central banks, and asset managers. The 2-year tranche was particularly attractive to those seeking shorter maturities, whilst the 5-year tranche appealed to traditional real money investors. This strategic approach allowed UOB to achieve cost-effective funding and optimise maturity management.
Koh Chin Chin, Head of Group Treasury at UOB, stated, “The strong demand for our Singapore Covered Bonds reinforces Singapore’s standing in global capital markets. Following the success of our recent GBP issuance, our latest EUR covered bond also attracted robust investor interest, reflecting confidence in UOB.”
The transaction further strengthens UOB’s position in the European covered bond market and highlights its diversified funding platform. The final order book closed at approximately €3.9 billion, demonstrating robust support from high-quality institutional investors.
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