OCBC prices S$550m perpetual capital securities at 4.5%

OCBC served as the sole lead manager and bookrunner for this issue. 

OCBC has priced its S$550m perpetual capital securities at a fixed rate of 4.5%.

The securities, first callable in 2029, is part of its US$30b global medium term note program. The securities will be issued on 15 August 2023.

The capital securities may be redeemed by OCBC through either of the following options: on 15 February 2029 or any distribution payment date falling after the first reset date; upon the occurrence of a tax event; or if the capital securities no longer qualify as eligible capital.

Holders will receive distributions semi-annually in arrear of 4.5% per annum from the issue date to the first reset date. 

OCBC clarified that it may cancel distributions at its sole discretion, subject to the provisions of the capital securities.

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“The bank is also not obliged to pay distributions to holders under certain circumstances,” OCBC said, adding that any distributions which are not paid, in accordance with the terms and conditions of the Capital Securities, are non-cumulative and will not compound. 

If not redeemed at the first reset date, the distribution rate will be reset on the date and every five years thereafter to a fixed rate per annum equal to the then prevailing 5-year SORA-OIS and the initial spread of 1.3348%.

OCBC served as the sole lead manager and bookrunner for this issue. 

OCBC also expects the capital securities to be rated Baa1 by Moody’s Investors Service, BBB- by Standard & Poor’s Rating Services and BBB+ by Fitch Ratings.