United Overseas Bank Limited (UOB), a leading financial institution in Asia, has successfully launched its 2024 Renminbi Bond issue, marking a significant step in the bank’s fundraising efforts. The bond with the bond code 292480021 in China Interbank Bond Market, is an ordinary financial bond that has garnered attention in the Chinese market.
The bond, named the “United Overseas Bank Limited 2024 Renminbi Bonds (Series 1)”, has a term of three years, with an issue date set for 21st October 2024 and a maturity date scheduled for 22nd October 2027. The bond carries a fixed interest rate of 2.3% per annum, paid annually, and has a face value of RMB 100.00. The issuance was priced at par, reflecting a strong market response.
The planned issue size was RMB 4.5 billion, but the actual issuance volume reached RMB 5 billion, indicating a positive reception among investors. The bond is of the fixed-rate variety, with interest calculated on a simple basis and not compounded. The transaction saw a clean-up call option, allowing the issuer to redeem the bonds prior to maturity under certain conditions.
United Overseas Bank Limited, the issuer of these bonds, is a well-established bank with a broad presence across Asia. Incorporated in Singapore and with a significant footprint in China, Indonesia, Malaysia, Thailand, and Vietnam, UOB operates a network of around 500 branches and offices in 19 countries and territories. The bank is renowned for its comprehensive suite of financial products and services, and it boasts a strong credit rating of AAA from China Chengxin International Credit Rating Co., Ltd.
The bonds have been assigned a AAA rating by China Chengxin International, aligning with the issuer’s own AAA rating, indicating a high level of credit quality and minimal risk. The bonds are proposed to be listed on the Singapore Exchange Securities Trading Limited (SGX-ST), subject to approval.
The successful launch of the 2024 Renminbi Bond issue by United Overseas Bank Limited highlights the bank’s continued commitment to expanding its funding sources and strengthening its capital base. With a robust credit rating and a strategic approach to risk management, UOB is well-positioned to capitalize on the opportunities presented by the dynamic Asian market.