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United Overseas Bank on Thursday said it would price its US$650 million of 3.875 percent perpetual capital securities at an initial spread of 179.4 basis points above the five-year U.S. dollar swap rate.

The issue date of the perpetual capital securities is currently expected to be on 19 October 2017. They are expected to be rated Baa1 by Moody's Investors Service and BBB by Fitch Ratings.

The perpetual capital securities will be issued under the S$15 billion Euro Medium Term Note Programme, it said in a statement.

The perpetual securities may be redeemed at the option of the company on 19 October 2023 or any distribution payment date thereafter, the company said.

United Overseas Bank, Credit Suisse (Singapore), Deutsche Bank and the Hongkong and Shanghai Banking Corp have been appointed as joint lead managers for the securities.