Martin Lee @ Sg
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OCBC to Issue US$500 mln Bonds

Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) wishes to announce that it will launch today a benchmark international offering of U.S. dollar denominated fixed rate subordinated notes (“Notes”) to institutional and sophisticated investors. The Notes are expected to have a 10-year maturity and a call option 5 years from the issue date, with a step-up in the fixed rate coupon after the 5th year if the Notes are not called by OCBC Bank.
The Notes are expected to qualify as Lower Tier 2 regulatory capital of OCBC Bank. The proposed issue is part of OCBC Bank’s ongoing capital management plan to improve the mix of its Tier 1 and Tier 2 capital instruments, so as to enhance the efficiency of its capital structure. As of 30 September 2009, OCBC Group’s Tier 2 capital was fully offset by deductions from capital and its eligible total capital comprised entirely of eligible Tier 1 capital. Both the Group’s Tier 1 and total capital adequacy ratios were 15.2% as of 30 September 2009.
The net proceeds from the issue of the Notes will be used for general corporate purposes of OCBC Bank. The proposed issue is unrelated to the funding of the proposed acquisition of ING Asia Private Bank Limited and its affiliated entities, announced on 15 October 2009.
OCBC Bank, Credit Suisse (Singapore) Limited, Goldman Sachs (Singapore) Pte. and Morgan Stanley Asia (Singapore) Pte. are joint lead managers and joint bookrunners for the proposed issue.

Oversea-Chinese Banking Corporation Limited (OCBC Bank)  announced yesterday that it will launch a US$500 bond issue to institutional and sophisticated investors. The Notes are expected to have a 10-year maturity (year 2019) and a call option 5 years from the issue date, with a step-up in the fixed rate coupon after the 5th year if the Notes are not called by OCBC Bank.

The proposed bond issue is part of OCBC Bank’s ongoing capital management plan to improve the mix of its Tier 1 and Tier 2 capital instruments, so as to enhance the efficiency of its capital structure. As of 30 September 2009, OCBC Group’s Tier 2 capital was fully offset by deductions from capital and its eligible total capital comprised entirely of eligible Tier 1 capital. Both the Group’s Tier 1 and total capital adequacy ratios were 15.2% as of 30 September 2009.

The net proceeds from the issue of the bonds will be used for general corporate purposes of OCBC Bank. The proposed issue is unrelated to the funding of the proposed acquisition of ING Asia Private Bank Limited and its affiliated entities, announced on 15 October 2009.

OCBC Bank, Credit Suisse (Singapore) Limited, Morgan Stanley Asia (Singapore) and Goldman Sachs (Singapore) are joint lead managers and joint bookrunners for the proposed issue.

The OCBC bonds will pay a coupon of 4.25% p.a. for the first five years. If the Notes are not redeemed or purchased and cancelled after 5 years, the interest rate from then to the maturity date on 18 November 2019 will be reset to a fixed rate per annum equal to the aggregate of the relevant 5-year US Treasury benchmark rate and 2.997%.

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