UOB prices Singapore's first sustainability bond offering

Uploaded By: 
Alyssa Divina
Case Study: 
Top Classification (Section): 
Deep Classification (Category): 
Financial Services

UOB raised $2b with a final order book of $3.7b.

UOB has priced Singapore’s first sustainability bond offering, with the US dollar-denominated issuance representing the first dual tranche senior (senior notes) and Tier 2 instrument (subordinated notes) in sustainability format globally from a bank issuer.

This is UOB’s inaugural issuance under its Sustainable Bond Framework launched in March. The two notes have been priced at a fixed coupon rate of 1.25% and 2% per annum respectively.

In aggregate, UOB raised $2b (US$1.5b), with a final order book of $3.7b (US$2.75b). The debut sustainability format of the dual tranche issuance benefitted from sustainability-focused investors, who contributed 60% to the final order book, the bank said.

The proceeds will finance or refinance eligible businesses and projects in areas such as green buildings and renewable energy, as well as eligible social assets including COVID-19-related temporary bridging loans extended to SMEs in Singapore.

The issue date of the notes is expected to be on 14 April.