OCBC sells largest Basel III bond in Asia ex-Japan

Oversea-Chinese Banking Corporation sold a $1 billion 10.5-year Basel III-compliant Tier 2 bond on Tuesday, illustrating the Singapore bank’s ongoing push to boost its capital in order to fund its growth and replenish maturing old-style subordinated debt.

OCBC's new bond   callable in year 5.5 is the largest Basel III-compliant dollar deal and the first-ever bank capital transaction in the 144A market in Asia ex-Japan, according to Dealogic.

The note forms part of OCBC's strategic funding plans, analysts said.

“We are seeing that banks in Singapore are pursuing relatively rapid growth strategies,” Eugene Tarzimanov, senior credit officer at Moody’s, told...