Oversea-Chinese Banking Corp (OCBC), Singapore’s second-largest lender, has priced £1 billion ($1.36 billion) in sterling-denominated covered bonds maturing in 2029. Issued under OCBC’s broader $10 billion Global Covered Bond Programme, the transaction highlights the bank’s continued strategy to diversify its long-term wholesale funding structure across key international currencies.
Key Issue Details & Term Sheet
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Issuer: Oversea-Chinese Banking Corp (OCBC)
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Total Issue Size: £1 Billion (~$1.36 Billion USD)
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Maturity Date: 2029
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Coupon Structure: Floating rate tied to Compounded Daily SONIA + 0.48% p.a. (payable quarterly in arrears)
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Expected Credit Ratings: Aaa (Moody’s) / AAA (Fitch Ratings)
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Key Timeline: Issue Date set for August 26, 2026; listing on the Singapore Exchange (SGX) expected August 27, 2026
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Use of Proceeds: General corporate and balance sheet management purposes
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Joint Lead Managers: Barclays, Lloyds Bank Corporate Markets, RBC Europe, HSBC Singapore, and TD Bank
Capital Markets Context
| Program Dimension | Current Sterling Issuance (Aug 2026) | Prior European Issuance (May 2026) |
| Volume & Currency | £1.0 Billion | €500 Million |
| Pricing Benchmark | Compounded Daily SONIA + 0.48% | 2.989% Fixed Rate |
| Tenor / Maturity | 2029 | 2029 |
| Framework | $10 Billion Global Covered Bond Programme | $10 Billion Global Covered Bond Programme |
Strategic Rationale
Covered bonds offer prime-tier security backed by high-quality residential mortgage pools, enabling OCBC to secure low-cost, long-term liquidity at tight credit spreads over risk-free benchmarks like SONIA. By tapping both Euro and Sterling markets within months, OCBC maintains a well-matched asset-liability profile while mitigating reliance on any single regional market.
