UOB Prices First Panda Bond
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United Overseas Bank announced it has priced Singapore’s first Panda Bond at 3.49 percent, one of the lowest rates among all Panda bonds. The Singapore based lender UOB said that its three-year, 2 billion renminbi (S$404 million) offering garnered strong demand with a subscription rate of 2.7 times from asset managers and commercial bank investors across Asia. Thirty-eight percent was placed to China’s onshore investors and 62 percent to international offshore investors.
«Our participation in China’s onshore debt market, one of the largest globally, enables us to grow our presence in China as the country continues to liberalize the renminbi 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,» said Wee Ee Cheong, CEO of UOB, said in a media statement.
Questions & Answers
Q.What is the interest rate for UOB's Panda Bond, and how does it compare to others?
What is the interest rate for UOB's Panda Bond, and how does it compare to others?
UOB priced its Panda Bond at 3.49 percent. This rate is noted as one of the lowest among all Panda bonds issued to date.
Q.How much capital did UOB raise through this offering, and how long is the bond's term?
How much capital did UOB raise through this offering, and how long is the bond's term?
UOB raised 2 billion renminbi, equivalent to S$404 million, through this offering. The bond has a three-year term.
Q.What proportion of the bond was placed with investors in China compared to international investors?
What proportion of the bond was placed with investors in China compared to international investors?
Thirty-eight percent of the bond was placed with China's onshore investors. The remaining 62 percent was placed with international offshore investors.
Q.According to UOB's CEO, what are the strategic benefits of participating in China's debt market?
According to UOB's CEO, what are the strategic benefits of participating in China's debt market?
UOB's CEO stated it allows them to grow their presence in China as the country liberalises its markets. It also diversifies funding sources and uses increased connectivity between China and ASEAN.
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