Union Bank raises P9-B from oversubscribed bonds offering

Published December 3, 2020, 3:26 PM

by James A. Loyola

Union Bank of the Philippines has successfully raised P9 billion from its Peso-denominated fixed rate bonds dual tranche offering.

In a disclosure to the Philippine Stock Exchange, the bank said this is the third bond issuance by UnionBank from its P39 billion Bonds Program. 

The 3-year tranche raised a total of P8.12 billion and carries an interest rate of 2.750 percent while the 5.25-year tranche raised a total of P885 million and carries an interest rate of 3.375 percent.

The bonds will be issued and listed on the Philippine Dealing & Exchange Corp. on December 9, 2020. 

As a result of the healthy demand from investors, the issuance was upsized by three times the initial target issue size of P3 billion.

“The third drawdown from the Bank’s program is part of our on-going efforts to extend term liabilities, expand funding base, and also support its business expansion plans,” said UnionBank  Chief Finance Officer Jose Emmanuel Hilado. 

The issuance also marks the first dual-tranche offering issued under the BSP Circular No. 1010 on Bank-issued Bonds. Moreover, UnionBank’s 5.25-year tranche is also the longest tenor Bank-issued bond to date. The Hongkong and Shanghai Banking Corporation Limitedand Standard Chartered Bank are the Joint Lead Arrangers and Bookrunners on the transaction. They are also the Selling Agents for the offering together with UnionBank.