United Overseas Bank (UOB) Sydney Branch has successfully priced a A$2b three-year senior floating-rate bond on 21 February 2025, marking the largest Australian dollar issuance by a Singaporean issuer. The bond was priced at 0.65% above the three-month Bank Bill Swap Rate (BBSW), achieving the tightest spread for a jumbo-sized issuance above A$1b by any Asian bank.
Koh Chin Chin, Head of Group Treasury, Research and Customer Advocacy at UOB, highlighted the significance of the transaction, noting the growth in Australian dollar primary issuances. “We are particularly pleased to have been able to achieve the volume today whilst at the same time, with the support of both our domestic and international investors, a very balanced distribution,” she said.
The issuance comes amid a record start to the year for the Australian bond market, with A$69b issued so far in 2025, a 28% increase year-on-year. UOB capitalised on these favourable conditions, announcing the mandate and initial pricing guidance on 20 February, and opening the books with indications of interest totalling A$3.85b.
The final order book reached A$4.4b, representing a subscription ratio of 2.2 times. The issuance saw strong demand from both domestic and international investors, with 57% of the allocation going to Australian investors. The notes are expected to be issued on 28 February 2025, with joint lead managers including Australia and New Zealand Banking Group, Bank of China, Commonwealth Bank of Australia, UBS, UOB, and Westpac Banking Corporation.
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