OCBC launches $1.75 billion bank capital issue

OCBC will begin roadshows for Asia's largest ever bank capital transaction next Wednesday, with presentations for a $1.75 billion multi-currency upper tier 2 issue scheduled to commence in Singapore. The 10-year bullet transaction forms part of the bank's hostile S$4.8 billion ($2.7 billion) cash bid for Keppel Capital Holdings (KCH) and, unusually, is being launched before OCBC has even won approval from the latter's shareholders.

UBS Warburg, which is advising the bank on its general offer for the group, is sole bookrunner. Winning the deal represents a major coup, particularly since JPMorgan and Merrill Lynch were previously mandated for a $1 billion bank capital transaction, while Goldman Sachs had been OCBC's ratings advisor, as well as its M&A advisor for the disposal of non-core assets and general restructuring.