Day: January 8, 2021

UOB prices capital securities referencing Sora, Companies & Markets

Fri, Jan 08, 2021 – 12:33 PM

UOB announced on Friday that it has successfully priced capital securities with a reset coupon rate that references the Singapore Overnight Rate Average Overnight Indexed Swap (Sora-OIS) rate, which is believed to be the first in Singapore.

The bank’s latest issuance is a step forward to promote the adoption of a Sora-based pricing benchmark in the Singdollar bond market, and part of broader industry efforts to develop deep and robust Sora-based cash and derivatives markets.

The reset coupon rate of UOB’s perpetual, non-call five-year additional Tier 1 securities on the first call date will reference the five-year Sora-OIS rate, instead of the five-year SOR interest rate swap (IRS) that had been the benchmark reference rate in the market.

This comes as Singapore is in the midst of its transition from SOR to Sora as the new interest rate benchmark, on the back of