Singapore's OCBC to issue 10-year tier 2 subordinated notes |
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Fri, 16 Nov 2007 01:57
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SINGAPORE (Thomson Financial) - Oversea-Chinese Banking Corp, the smallest of the three Singapore banks, said Friday it plans to issue an unspecified amount of tier 2 subordinated notes to diversify its capital mix.'While the group's total capital adequacy ratio of 12.8 percent as of September 30, 2007 is well above the Monetary Authority of Singapore's minimum requirement of 10 percent, it is weighted towards a relatively high tier 1 ratio of 11.9 percent,' OCBC said.The notes will have a 10-year maturity with a call option after five years.In the first five years, the notes will bear a fixed rate equivalent to the five-year Singapore dollarswap offered rate plus a credit spread.After five years, the notes will bear a floating rate equivalent to the three-moth Singapore dollar swap offered rate plus the initial spread and an additional 1 percent.The bank last issued tier 2 capital worth 3.8 billion Singapore dollars in 2001.(1 US dollar = 1.44 Singapore dollars)TFN.Singapore@thomson.comjb/msCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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