SG Morning Call | UOB Prices US$1.4 Billion Floating Rate Covered Bonds Due 2030
Market Snapshot
Singapore stocks opened lower on Wednesday. STI fell 0.7%; OCBC fell 1.6%; Singtel fell 1.4%; UOB fell 0.7%; DBS fell 0.5%.
Stocks in Focus
$UMS Integration(558.SI)$: The group announced on Tuesday that the company’s wholly owned subsidiary in Singapore, UMS International, has incorporated a wholly owned subsidiary in Vietnam, UMS Vietnam Integration Company, with an issued and paid-up share capital of US$2 million. Shares of UMS ended at S$2.82 on Tuesday, S$0.05 or 1.7 per cent lower.
$Koh Brothers Eco Engineering(K75.SI)$: Shareholders of Koh Brothers Eco Engineering voted in favour of moving the company from the Catalist to the mainboard of the Singapore Exchange in an extraordinary general meeting on Tuesday. Shares of Koh Brothers Eco Engineering ended 9.6 per cent or S$0.011 lower at S$0.103 on Tuesday.
$UOB(U11.SI)$: The bank on Wednesday said that it has priced £1 billion (US$1.4 billion) floating rate covered bonds due February 2030. The bonds are expected to be issued on Aug 25 and will bear interest at the compounded daily Sterling Overnight Index Average rate, plus 0.49 per cent per annum payable quarterly in arrear. They are issued as the 17th series under UOB’s US$15 billion global covered bond programme. Shares of UOB closed 0.6 per cent or S$0.25 lower at S$40.88 on Tuesday.
SG Local News
UOB Prices US$1.4 Billion Floating Rate Covered Bonds Due 2030
UOB on Wednesday (Aug 19) said that it has priced £1 billion (US$1.4 billion) floating rate covered bonds due February 2030.
The issue date of the covered bonds is expected to be Aug 25. An application will be made to the Singapore Exchange for the listing and quotation.
The covered bonds will bear interest at the compounded daily Sterling Overnight Index Average (Sonia) rate, plus 0.49 per cent per annum payable quarterly in arrear.
The Sonia rate is the average of the interest rates that banks pay to borrow the pound sterling from other financial institutions and institutional investors overnight.
UOB Names Tan Choon Hin to New Asean, Greater China Role
UOB has appointed Tan Choon Hin as its head of Asean and Greater China, a new senior role aimed at driving growth from increasing cross-border flows between the two regions.
Tan, currently the bank’s deputy chief risk officer, will take on the role on Sep 1, UOB said on Tuesday (Aug 18).
He will oversee UOB’s regional businesses across seven markets, including its subsidiaries in Malaysia, Indonesia, Thailand, Vietnam and mainland China, as well as its branches in Hong Kong and Taiwan.
Working with the respective country chief executives and management teams, Tan will be tasked with strengthening collaboration across the lender’s regional businesses and accelerating cross-border and revenue opportunities, UOB said.
Social Media Platforms Must Verify Advertisers’ Identities Under New Singapore Code
Facebook, Instagram and TikTok must soon verify the identities of advertisers on their platforms against government-issued records.
They need to block advertisements from financial services firms not licensed in Singapore, too. This includes advertisers not licensed by the Monetary Authority of Singapore or other relevant authorities in Singapore.
The three social media platforms have to comply with these new requirements by Jan 31, 2027 under a new Code of Practice for Social Media Services for such platforms announced by the police on Aug 18.
Failure to comply is a criminal offence under the Online Criminal Harms Act, which may result in fines of up to S$1 million.
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