China Bank raises P20B from bond offer

Published February 19, 2021, 5:30 AM

by James A. Loyola

China Banking Corporation has successfully raised P20 billion via the issuance of three-year fixed-rate bonds, the first from a financial institution in the country this year.

 In a disclosure to the Philippine Stock Exchange, the bank said the issuance is four times the original offer of P5 billion due to overwhelming demand from individual and institutional investors.

The proceeds from the offer will be used to support China Bank’s strategic initiatives and expansion programs.

  The bonds are due in 2024 and carry an interest rate of 2.50 percent per annum, payable monthly.

“This successful issuance represents a strong start of the year for China Bank. We would like to extend our gratitude to our investors, customers, and everyone involved in this transaction for their continued trust in us,” said China Bank President William C. Whang. 

 He added that, “The strong demand we garnered underscores the investing public’s sustained confidence in China Bank amid these challenging times.” 

 The bond issuance is the second drawdown under China Bank’s P45 billion bond and commercial paper program established in September 2020. In October 2020, the Bank successfully raised P15 billion in two-year bonds under the same program. 

  China Bank Capital Corporation was the issue coordinator, structuring advisor, joint lead arranger and joint bookrunner for the issuance.

  The Hong Kong and Shanghai Banking Corporation Limited (HSBC) and Philippine Commercial Capital, Inc. (PCCI) were the joint lead arrangers, joint bookrunners, and selling agents for the transaction.