United Overseas Bank (UOB) has successfully priced EUR850m in covered bonds, set to mature in 2030, with a 2.718% annual coupon. The issuance, which was oversubscribed with an order book exceeding EUR1.2b, attracted significant interest from asset managers, banks, central banks, and official institutions. This marks the first 5-year EUR covered bond from a Singapore bank since October 2021.
The bond issuance represents the tightest 5-year non-EU EUR covered bond since September 2022, with UOB managing to reprice the Singapore curve tighter by 1 basis point. The final pricing was set at mid-swap plus 30 basis points, landing 1 basis point inside fair value. This achievement underscores UOB’s ability to secure competitive pricing in the EUR covered bond market compared to its USD Senior new issue curve.
Koh Chin Chin, Head of Group Treasury, Research and Customer Advocacy at UOB, expressed satisfaction with the market’s response, stating, “We are pleased to return to the EUR covered bond market and thank investors’ continued support in allowing us to extend the curve for Singapore at the tightest 5-year pricing for a non-EU issuer in recent years.”
The distribution of the bond saw robust demand from various regions, with Switzerland accounting for 28%, Germany 26%, the United Kingdom 19%, and the Nordic region 14%. The bonds are expected to be rated Aaa by Moody’s Investors Service and AAA by Standard & Poor’s Rating Services.
UOB’s successful issuance not only extends the pricing curve for Singapore issuers but also highlights the bank’s strategic positioning in the global bond market. The bonds are set to be listed on the Singapore Exchange, with the issue date expected on 1 December 2025.
