OCBC raises another $500 million of lower tier-2 capital

The Singapore-based bank targets Asian investors with a bondholder-friendly issue of subordinated debt.

Oversea-Chinese Banking Corporation OCBC raised $500 million through the sale of subordinated notes yesterday, almost a year after a similar deal. The notes are intended to qualify as lower tier-2 capital for the Singapore-based bank.

The issue pays a fixed-rate semi-annual coupon of 3.75% and was reoffered to investors at 99.367 to yield 3.854% to an expected seven-year maturity. The bonds are subject to a one-off call at par on November 15, 2017 if the call is not exercised by the borrower, the coupon changes to floating-rate, paying 184.8bp over three-month Libor.

The expected early redemption means the notes were sold at a spread over the five-year US Treasury -- the closest benchmark...

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