UOB adopts rare structure for dollar AT1 debut

Demand for the non-call six-year note reached $3.25 billion at peak level, highlighting robust appetite for hybrid capital.

United Overseas Bank raised $650 million through the sale of its first dollar-denominated Basel III-compliant bond on Wednesday, joining a recent pick-up in issuance of the hybrid capital in Asia.

The Singapore lender turned heads with a perpetual non-call six-year format, rather than a habitual non-call five-year structure that most bank borrowers issue in the region. However, investors were largely unfazed by the uncommon call option after six years, building a respectable order book of $3.25 billion at peak level, before moderating to $2.6 billion in the end.

The hybrid deal was launched a day after its Chinese counterpart, Bank of Zhengzhou, raised $1.19 billion...

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