By JAMES A. LOYOLA
East West Banking Corporation (EastWest) has launched its maiden bond issue of ₱2 billion while Security Bank has raised ₱2.07 billion from its offer of Long-Term Negotiable Certificates of Deposit (LTNCD).
In a disclosure to the Philippine Stock Exchange, EastWest said it is planning to issue fixed-rate bonds due 2023. The bonds carry an interest rate of 4.5 percent per annum to be paid quarterly for three years.
The Bank’s first bond offering started on February 10 and will end on February 14, 2020, and is available for a minimum investment of ₱500,000 and increments of ₱100,000 thereafter.
“Through its maiden bond issuance, EastWest aims to serve its clients better by providing alternative investment products,” EastWest Senior Executive Vice President and Treasurer Rafael Algarra Jr. said.
He added that, “The bond issuance will also pave the way for future issuances and strengthen the Bank’s liquidity position by diversifying its sources of funding.”
The bonds are sold through the selling agents, EastWest and Unicapital, Inc., likewise the lead arranger of the bonds. The issue and listing date on the Philippine Dealing and Exchange Corp. is targeted on February 21, 2020.
Meanwhile, Security Bank disclosed to the PSE that its LTNCD issuance was driven by solid demand from retail investors and total subscriptions of ₱2.07 billion exceeded its original offer of ₱1 billion.
This follows on the hack of the ₱2.3-billion tranche issued by the Bank in December 2019. The ₱2.07-billion drawdown marks the third tranche of Security Bank’s ₱20-billion approval from the Bangko Sentral ng Pilipinas.
The LTNCD issuance is part of the bank‘s efforts to diversify its funding sources and support business expansion plans.
Multinational Investment Bancorporation acted as the Sole Lead Arranger and Selling Agent, assisted by Security Bank.