Singapore’s United Overseas Bank looking to expand
(Singapore/Hong Kong) Singapore's United Overseas Bank is looking to sell US$750 million of 10-year bonds this week in order to raise funds for business expansion.
The bank, which is Singapore’s second-largest lender, is returning to the debt market two years after acquiring Overseas Union Bank.
Speculation is rife that the bank could use the money to buy back its own shares from property and hotel management groups United Overseas Land and Overseas Union Enterprise.
In light of Singapore’s low interest rates and strong demand for the issue, which is being managed by Merrill Lynch and Deutsche Bank, the size was increased from US$500 to $750 million early last week.
The United Overseas Bank has made no secret of its desire to push into the Chinese banking sector and began talks with several Chinese banks earlier in the year about possible alliances.
Speculation is rife that the bank could use the money to buy back its own shares from property and hotel management groups United Overseas Land and Overseas Union Enterprise.
In light of Singapore’s low interest rates and strong demand for the issue, which is being managed by Merrill Lynch and Deutsche Bank, the size was increased from US$500 to $750 million early last week.
The United Overseas Bank has made no secret of its desire to push into the Chinese banking sector and began talks with several Chinese banks earlier in the year about possible alliances.
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