Singapore's Overseas Chinese Banking Corporation (OCBC) raised over $800m through the sale of a callable note this week. The subordinated debt notes are expected to qualify as lower tier-2 capital for the Singapore-based bank.
The seven-year notes pay a semi-annual coupon of 3.75% pa and was priced at 99.367 to yield 3.854% pa.
The issuer can call the notes after seven years, after which the rate switches to three-month Libor plus 184.8 basis points.
The total demand for the deal was around $850m, made up of around 80 orders. The issue was sold under Regulation-S only, so onshore US investors were excluded, it was reported. Book runners and lead managers were JPMorgan, Morgan Stanley, OCBC and Royal Bank of Scotland.
Asian investors took most of the notes (80%), and the remainder was placed with European accounts. By investor type, 45% of the issue was sold to fund managers, 34% to commercial banks, 13% to private banks and 8% was bought by assorted investors, including insurance companies and sovereign agencies.
Moody's rated the deal Aa2, but Standard and Poor's assigned a rating of single A, three notches lower, and Fitch rated it A+.