KUALA LUMPUR: United Overseas Bank Ltd (UOB) has successfully priced the first Panda bond from Singapore, which is also the second issued from a Southeast Asian financial institution.
UOB’s debut onshore renminbi (RMB) bond was priced at 3.49 per cent, one of the lowest rates among all Panda bonds issued to date.
The three-year RMB2.0 billion offering garnered strong demand with a subscription rate of 2.7 times from asset managers and commercial bank investors across Asia.
A total of 38 per cent was placed to China’s onshore investors and 62 per cent to international offshore investors.
UOB said the bond issuance diversifies its investor base by currency and geography while promoting development of China’s Panda bond market.
UOB group chief executive officer Wee Ee Cheong said the debut Panda bonds marks another milestone in UOB’s longstanding commitment to support greater financial market connectivity in the region.
“In particular, our participation in China’s onshore debt market, one of the largest globally, enables us to grow our presence in China as it continues to liberalise the RMB and its financial markets.
“Further, through this offering, we can diversify our funding sources and continue to tap the increased connectivity between China and Asean arising from the Belt and Road Initiative to serve our customers’ needs,” he said.
UOB’s commitment to China began in 1984 with the establishment of its Beijing representative office.
This Panda bond issuance from UOB is the second offering from the group after United Overseas Bank (China)’s onshore bond issued in April 2018.
Both issuances are rated AAA by China Chengxin International Credit Rating Co Ltd with a stable outlook.
Bank of China acted as the Lead Underwriter and Lead Bookrunner, while China Securities Co Ltd and Standard Chartered Bank (China) Ltd acted as joint lead underwriters and joint bookrunners.