OCBC priced $500M of Tier 2 sub notes

OCBC priced $500M of Tier 2 sub notes

OCBC Prices $500 Million Tier 2 Subordinated Notes

OCBC Bank has successfully priced a $500 million issuance of Tier 2 subordinated notes, according to regulatory disclosures. The transaction, structured as floating rate notes (FRNs) with a maturity date in August 2027, aligns with OCBC's broader strategy to optimize its capital structure and support liquidity needs.

Tier 2 instruments, such as these subordinated notes, are classified as supplementary capital under regulatory frameworks and are commonly used by financial institutions to bolster balance sheets while adhering to Basel III requirements. The issuance reflects OCBC's ongoing engagement in debt capital markets, leveraging its established expertise in structuring hybrid and subordinated instruments.

The pricing of these notes follows OCBC's active participation in regional capital markets, including recent transactions in sustainable finance and liability management. For instance, the bank has previously been recognized for its role in high-profile deals, such as green bonds, sustainability-linked loans, and Islamic finance structures, particularly in Southeast Asia and Greater China.

While specific terms of the $500 million Tier 2 issuance—such as coupon rate, call provisions, or credit ratings—were not detailed in the provided materials, the transaction underscores OCBC's capacity to access international debt markets. The bank's capital markets division, which offers a range of fixed and floating rate instruments, has consistently ranked among leaders in regional bond and sukuk (Islamic bond) issuance.

This move comes amid a broader trend of financial institutions strengthening capital reserves in response to evolving regulatory expectations and macroeconomic uncertainties. OCBC's issuance further demonstrates its commitment to maintaining robust liquidity and capital adequacy, critical for navigating potential market volatility.

OCBC's pricing supplement for A$500m FRNs due 2027: OCBC's pricing supplement for A$500m FRNs due 2027.
OCBC's corporate advisory and capital markets services: OCBC's corporate advisory and capital markets services, including subordinated notes and Tier 2 instruments.

Word count: 300