OCBC to boost tier-2 capital through bond swap

The Singapore bank is offering to exchange all S$1 billion worth of outstanding subordinated bonds due 2011 for slightly senior 10-year non-call-five notes.

Oversea-Chinese Banking Corporation OCBC has announced a bond swap, offering to exchange its S$1 billion $645 million of outstanding 5% upper tier-2 bonds due September 2011 for the same principal amount of new 5.6% lower tier-2 notes due 2019. While the exchange won't result in any fresh cash, it will increase the bank's lower tier-2 capital, which ought to be viewed favourably by investors in an environment where there is an increasing focus on capital adequacy ratios.

The new subordinated...

FinanceAsia has updated its subscription model. Registered readers now have the opportunity to read five articles from our award-winning website for free. Please subscribe for unlimited access.

Click for more on: exchange | bond swap | ocbc | woori

Print Edition

FinanceAsia Print Edition

EVENTS