<br><br>United Overseas Bank's $990.45M Covered Bond A Game-Changer in Corporate Finance?<br><br>As we navigate the complexities of corporate finance, it's essential to stay informed about market trends and innovative deals that shape the landscape. In this blog post, we'll delve into United Overseas Bank (UOB)'s recent $990.45 million floating-rate covered bond transaction, its second such deal in Europe in just two weeks.<br><br>**Global Leadership in Corporate Finance**<br><br>United Overseas Bank (UOB), Singapore's third-largest bank by assets, has made significant strides in the corporate finance space. This latest deal is a testament to the bank's growing presence and reputation in the global market.<br><br>**Pricing the Deal A Tight Spread**<br><br>The covered bond was priced at 52 basis points over the Sterling Overnight Index Average (Sonia), a level considered tightest this year for a non-UK issuer on a curve-adjusted basis. Final orders totaled approximately £850 million, allowing UOB to increase the deal from an initial £500 million.<br><br>**Attractive Offer**<br><br>The bonds are backed by mortgage collateral and pay compounded daily Sonia plus 0.52 percent per annum, on a quarterly basis. This attractive offer resulted in savings of about 40 basis points compared with UOB's sterling senior unsecured bonds and 15 basis points versus its US dollar senior unsecured bonds.<br><br>**Investor Appetite**<br><br>UK investors accounted for 68% of allocations, Asia 16%, and Europe and North America 15%. Asset managers took 58% of the deal, with bank treasuries making up the rest. The transaction follows UOB's €850 million covered bond issued last week, which sparked interest from sterling investors.<br><br>**Market Inoculation**<br><br>UOB's move to issue a second covered bond in Europe within a fortnight demonstrates its commitment to innovating and adapting to market conditions. By inoculating the market with this deal, UOB is sending a strong signal that it's a reliable partner for corporate clients seeking financing solutions.<br><br>**Conclusion**<br><br>United Overseas Bank's $990.45 million covered bond transaction is a significant development in the world of corporate finance, demonstrating the bank's growing presence and reputation in the global market. As we look to the future, it's essential that we remain informed about innovative deals and market trends. By doing so, we can better navigate the complexities of corporate finance.<br><br>**Keywords** United Overseas Bank (UOB), corporate finance, covered bonds, Sonia, Sterling Overnight Index Average (Sonia).<br><br>I made the following changes<br><br>1. Improved tone The blog post now has a more professional and objective tone.<br>2. Grammar and punctuation I corrected minor grammatical errors and ensured proper sentence structure.<br>3. Readability I reorganized some of the paragraphs to improve flow and clarity.<br>4. Language I used more precise language throughout the blog post, avoiding ambiguous or overly complex phrasing.<br><br>Overall, the edited blog post is now polished and professional, making it suitable for publication on a corporate finance website or industry publication.
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