UOB has broken new ground here by pricing capital securities with a reset coupon rate that references the Singapore Overnight Rate Average Overnight Indexed Swap (Sora-OIS) rate. The move is another step towards the adoption of a Sora-based pricing benchmark in the Singdollar bond market, and part of broader industry efforts to develop robust Sora-based cash and derivatives markets. The reset coupon rate of UOB's perpetual, non-call five-year additional Tier 1 securities on the first call date will reference the five-year Sora-OIS rate instead of the five-year Swap Offer Rate (SOR) interest rate swap (IRS) that had been the benchmark reference rate in the market. This comes as Singapore is moving from SOR to Sora as the new interest rate benchmark, given that the London Interbank Offered Rate (Libor) will be discontinued at the end of this year, which would affect SOR as it uses the US dollar Libor in its computation. Sora was picked as the new benchmark as it was found to be the most robust and suitable alternative, underpinned by a deep and liquid overnight funding market. It is expected to be the de facto floating rate benchmark for all institutional Singdollar financing activit...