Thursday, August 28, 2008

UOB Class E Non-Cumulative Non-Convertible Preference Share (NCPS)

Just applied for this as well. It's quite similar in terms to the other NCPS issued by DBS and OCBC. The concerns are similar to the others as well. So if you are buying this, it has bond-like characteristics and is very much affected by the SIBOR interest rate.

Issuer: United Overseas Bank Limited ("UOB")
Format: Class E Non-Cumulative / Non-Convertible Preference Shares
Offer: 10,000,000 Preference Shares (S$1bln) of S$100 each, expected to be split as follows:-

Offering of 8,000,000 Preference Shares (S$800mln) to institutional and other investors ("Placement") &
Offering of 2,000,000 Preference Shares (S$200mln) to the public in Singapore through ATMs (the "ATM Offer")
Option to upsize: 5,000,000 Preference Shares (S$500mln) (the Issuer retains the right to set the final sizing of the Placement and ATM offers)

Minimum Application: (i) Placement : minimum 500 Pref Shares / S$50,000
(ii) ATM Offer : minimum 100 Pref Shares / S$10,000
Fixed Dividend Rate: 5.05% p.a., semi-annual
Closing Date of Offer: 12 September 2008 (The Issuer reserves the right to close the book early)
Issue Date: 15 September 2008
Redemption: Perpetual with no fixed redemption date
Optional Redemption: Redeemable at the option of UOB
(i) 5 yrs after Issue Date ;
(ii) 10 yrs after Issue Date &
(iii) each dividend payment date after 10 yrs
Issue Price: S$100 per Preference Share
Rating of Issue: Aa3 (Moody's)/ A- (S&P) / A+ (Fitch)
Listing: Singapore Exchange Securities Trading Limited ("SGX-ST")
Depository: The Central Depository (Pte) Ltd ("CDP")
Governing Law: Singapore
Joint Books: UOB / HSBC

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