UOB Successfully Prices 1 Billion EUR in Dual-Tranche Covered Bonds

United Overseas Bank (UOB) has issued a EUR 1 billion dual-tranche covered bond, a significant move marking its first EUR issuance of 2026. This issuance includes a EUR 500 million 2-year bond at mid-swap plus 7 basis points and a EUR 500 million 5-year bond at mid-swap plus 24 basis points. The transaction, the first of its kind by an Asian issuer, attracted peak orders exceeding EUR 4.25 billion, closing at approximately EUR 3.9 billion, indicating a strong demand from the market.

By issuing both 2-year and 5-year maturities, UOB catered to diverse investor needs, drawing interest from bank treasuries, central banks, and asset managers. The strong investor demand allowed UOB to tighten pricing, re-adjusting the 2-year tranche by 8 bps and the 5-year by 6 bps. The weighted average maturity achieved was 3.5 years.

Ms. Koh Chin Chin, Head of Group Treasury at UOB, highlighted the robust investor interest as a testament to confidence in UOB and Singapore's global capital market position. The transaction strengthens UOB's stance in the European bond market and solidifies its diversified funding platform.