UOB Pilots Digital Bond Issuance
(22 June 2021 – Singapore) UOB is piloting the digital issuance of its latest bond offering on exchange-operated digital asset issuance platform Marketnode, marking the first public capital issuance to reference the Singapore Overnight Rate Average (Sora) Overnight Indexed Swap rate.
The bank has priced S$600 million of perpetual capital securities at a fixed coupon rate of 2.55 percent – the lowest for benchmark perpetual securities for banks in Singapore.
Marketnode is a joint venture between Singapore Exchange and Temasek. It is an exchange-led digital asset venture focused on capital markets workflows through smart contracts, ledger and tokenisation technologies.
“UOB is fully behind the development of Singapore’s digital capital markets infrastructure and the smooth transition to a SORA-centred financial market,” said UOB Deputy Chairman and Chief Executive Officer Wee Ee Cheong.
“As more global issuers and investors come on board and participate in Singapore’s digital capital markets, we will see further strengthening of Singapore’s status as the region’s financial hub,” said Wee.