UOB prices £1B Sonia-linked covered bond in top-percentile debt deal
What's the deal? United Overseas Bank (UOB)Dealroom has a profile for this one. Try Dealroom → has priced £1 billion ($1.4 billion) in floating rate covered bonds due February 2030. The offering is the 17th series under the bank's $15 billion global covered bond programme.
The details: The bonds carry a floating rate set at the compounded daily Sterling Overnight Index Average (Sonia) plus 0.49% per annum, payable quarterly. UOB expects to issue the bonds on August 25, 2026, and list them on the Singapore ExchangeDealroom has a profile for this one. Try Dealroom →.
How big? At £1 billion, the raise ranks in the top tier of debt deals — roughly the 88th percentile by amount, placing it among the largest financings on record.
How it's structured: The bonds use a dual-recourse structure that lowers risk for buyers. Payments of principal and interest are guaranteed by Glacier EightyDealroom has a profile for this one. Try Dealroom →, an entity secured by a pool of loans purchased from UOB. MoodyDealroom has a profile for this one. Try Dealroom →'s is expected to assign an "Aaa" rating and S&PDealroom has a profile for this one. Try Dealroom → a "AAA" rating.
Who's involved? Alongside UOB's own investment banking arm, joint lead managers include the Bank of MontrealDealroom has a profile for this one. Try Dealroom →, HSBC SingaporeDealroom has a profile for this one. Try Dealroom →, RBC EuropeDealroom has a profile for this one. Try Dealroom →, and the Singapore branch of Standard CharteredDealroom has a profile for this one. Try Dealroom →.
Why now? By tapping the sterling market, UOB diversifies its funding base and optimises its balance sheet. Anchoring the coupon to Sonia aligns servicing costs with UK overnight money market conditions and reduces benchmark transition risk.
Market reaction: On August 18, 2026, the day before pricing, UOB shares closed 0.6% lower, dropping S$0.25 to S$40.88 in Singapore.
The signal: The successful pricing underscores steady institutional demand for high-grade paper and reinforces Singapore's role as a hub for cross-border debt distribution.
Read more: azat.tv
Image credit: alex.ch
