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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2017
21. DEBT ISSUED (continued)
21.1
SUBORDINATED DEBT (UNSECURED)
GROUP
2017
$’000
2016
$’000
Note Issue date Maturity date (a)
(b)
(c)
(d)
(e) 15 Nov 2010
11 Sep 2012
15 Apr 2014
19 Jun 2014
27 Aug 2008 15 Nov 2022
11 Mar 2023
15 Oct 2024
19 Jun 2024
20 Sep 2058 Issued by OCBC Bank (Malaysia) Berhad (“OCBC Malaysia”):
MYR400 million 6.75% Innovative Tier 1 Capital Securities
MYR600 million 4.00% bonds (f)
(g) 17 Apr 2009 Not applicable
15 Aug 2012 15 Aug 2022 132,182
–
132,182 128,985
193,292
322,277
Issued by OCBC Wing Hang Bank (“OCBC Wing Hang”):
USD400 million 6.00% step-up perpetual notes (h) 19 Apr 2007 Not applicable – 582,248
(i) 30 Jun 2010 30 Jun 2017 – 94,972
(j) 19 Jan 2011 19 Jan 2026 399,700 399,600
4,556,224 6,503,170
Issued by the Bank:
USD500 million 3.75% notes
USD1 billion 3.15% notes
USD1 billion 4.00% notes
USD1 billion 4.25% notes
SGD1.5 billion 5.10% notes
Subordinated debt issued to a subsidiary
Net subordinated debt issued by the Bank
Issued by PT Bank OCBC NISP Tbk (“OCBC NISP”):
IDR880 billion 11.35% Subordinated Bonds III
–
1,336,728
1,330,147
1,357,467
1,500,000
5,524,342
(1,500,000)
4,024,342
726,533
1,445,298
1,451,179
1,481,063
1,500,000
6,604,073
(1,500,000)
5,104,073
Issued by The Great Eastern Life Assurance Company Limited (“GEL”):
SGD400 million 4.60% notes
Total subordinated debt
(a) The subordinated notes were fully redeemed by the Bank on 15 November 2017.
(b) The subordinated notes are redeemable in whole at the option of the Bank on 11 March 2018. Interest is payable semi-annually on
11 March and 11 September each year at 3.15% per annum up to 11 March 2018, and thereafter at a fixed rate per annum equal
to the then prevailing 5-year US Dollar Swap Rate plus 2.279% if the redemption option is not exercised. The subordinated notes
qualify as Tier 2 capital for the Group.
(c) The subordinated notes are redeemable in whole at the option of the Bank on 15 October 2019. They can be written off in whole
or in part if the MAS determines that the Bank would become non-viable. Interest is payable semi-annually on 15 April and 15
October each year at 4.00% per annum up to 15 October 2019, and thereafter at a fixed rate per annum equal to the then prevailing
5-year US Dollar Swap Rate plus 2.203% if the redemption option is not exercised. The Bank had entered into interest rate swaps to
manage the risk of the subordinated notes and the cumulative fair value change of the risk hedged is included in the carrying value.
The subordinated notes qualify as Tier 2 capital for the Group.
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OCBC ANNUAL REPORT 2017