UOB pilots digital bond issuance on Marketnode's asset issuance platform

It is the first financial institution on the platform as an issuer and bond house.

UOB has piloted a digital bond issuance on Marketnode’s exchange-operated digital asset issuance platform, becoming the first financial institution in Singapore to do so.

The bank’s latest perpetual, non-call seven-year additional Tier 1 (AT1) capital securities offering is the industry’s first public capital issuance to reference the Singapore Overnight Rate Average Overnight Indexed Swap (SORA-OIS) rate.

The AT1 securities have been priced at a fixed coupon rate of S$2.55 per cent. UOB raised a total of S$600 million, with a final orderbook of more than S$b from a total of 73 accounts.

The transaction saw a subscription rate of 1.7 times, bolstered by an extensive investor base comprising both quality institutional accounts and private banking investors, the bank said.

A joint venture between the Singapore Exchange and Temasek, Marketnode is an exchange-led digital asset venture focused on capital markets workflows.