OCBC sells second $1bn Tier 2 bond

The Singaporean bank sold another Basel III-compliant note in an effort to shore up more capital to replenish maturing old-style subordinated debt.

Oversea-Chinese Banking Corp priced a $1 billion 10-year Basel III Tier 2 subordinated note late on Thursday, illustrating the Singapore bank’s ongoing push to boost capital in order to replace maturing old-style subordinated debt.

The 144AReg-S registered note is the tightest bank capital instrument to be priced in Asia ex-Japan, buoyed by strong demand from institutional investors as well as a favourable interest rates environment, a source close to the transaction told FinanceAsia. This is the second time OCBC has issued a Basel III-compliant note this year.

“I can’t think of any other deal that has come inside 200bp above Treasuries from the...

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