SINGAPORE, Nov. 25, 2025 /PRNewswire/ -- UOB has priced EUR850 million worth of covered bonds due 2030, with a coupon of 2.718% per annum. The bonds were oversubscribed with an order book of more than EUR1.2 billion, with investor demand predominantly from asset managers, banks, central banks and official institutions.
This was the longest tenor outstanding EUR covered bond from Singapore and the first 5-year covered bond since October 2021, extending the pricing curve for Singapore issuers. It was also the tightest 5-year non-EU EUR covered bond since September 2022.
UOB repriced the Singapore curve tighter by 1 basis point (bps), with final pricing of mid-swap (MS) plus 30bps landing 1bps inside fair value. The issuer successfully crystallized a tighter 3s5s curve, or the yield spread between the 3-year and 5-year EUR mid-swap, at 7bps compared to a usual 10bps curve for EUR covered bond.
UOB achieved extremely competitive pricing in the EUR covered bond market compared with its USD Senior new issue curve, pushing the boundaries of continually tightening EUR covered bond spreads.
Ms Koh Chin Chin, Head of Group Treasury, Research and Customer Advocacy, UOB, said, "We are pleased to return to the EUR covered bond market and thank investors' continued support in allowing us to extend the curve for Singapore at the tightest 5-year pricing for a non-EU issuer in recent years."
Salient points about this offering
- First 5-year EUR covered bond from a Singapore bank issuer since October 2021
- Tightest 5-year non-EU EUR covered bond since September 2022
Distribution Statistics
- Final orderbook >EUR1.2bn (including EUR200mm joint-lead managers) from 36 accounts
- Robust investor demand from Asset managers ~40%, Banks ~29%, Central Banks/Official Institutions ~28%, Insurance/Pension funds ~ 2%, Financial institutions ~1%
- Diversified geography from Switzerland ~28%, ~Germany 26%, United Kingdom ~19%, Nordic region ~14%, Benelux ~12%, Others ~1%
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