UnionBank issues the Philippines’ first-ever Digital Peso Bonds

Published July 2, 2022, 8:05 AM

by MB Business

One of the largest banks in the Philippines and a digital trailblazer in Asia Pacific, UnionBank will continue to unleash the synergies and value from its various digital investments in the past years and leap forward towards it goal of becoming a Great Retail Bank in its pursuit of enduring greatness.

In line with their vision to transform traditional banking services through digital innovations, Union Bank of the Philippines (UBP) is the first universal bank to successfully issue the country’s first-ever offering of Digital Peso Bonds. With an aggregate issue size of ₱11 billion, and backed by Distributed Ledger/Blockchain technology, the robust participation from retail and institutional investors resulted in an order book eleven times its initial minimum offer size of ₱1 billion.

The success of this issuance opens the door to a future filled with more digitally-based asset offerings. “This pioneering issuance serves as a building block in UnionBank’s journey to embrace digitization and positive disruption in the industry.” says Jose Emmanuel Hilado, Treasurer and Head of Global Markets for UBP. “I am confident that this will be recognized globally as a game changing digital initiative in the field of finance.” The digital bonds were issued through the digital registry and digital depository of the Philippine Depository & Trust Corp. (PDTC) utilizing infrastructure powered by #STACS blockchain, and a new digital infrastructure made interoperable with the traditional trading-to-clearing infrastructure of the Phil. Dealing & Exchange Corp. (PDEx) Fixed Income Market.

Widely known to have been trailblazing many firsts in the country since it began operations 40 years ago, UnionBank has always been among the first to embrace technological innovations to empower its customers into the future of banking. The Bank’s 40-year journey began with a simple vision: to become one of the top three universal banks in the country with respect to market capitalization, profits, and customer coverage.

UnionBank began building the foundations for its operations in 1981, and in just a year became a commercial bank on January 19, 1982. A decade after, in 1992, the Bank debuted at the Manila and Makati Stock Exchanges in June of that year, and was granted a Universal Banking License the month after.

Forty years later, UnionBank has gone full throttle on its digital journey and continues to achieve numerous industry-firsts, gaining the reputation as the country’s most innovative bank even before the Filipino mass adoption of the internet.

UnionBank was recognized by The Asset as “Digital Bank of the Year”, holding the distinction of being the first and only Philippine bank to receive the award five years in a row, and as a result, successfully established itself as a digital dynasty in the industry.

The bank’s relentless pursuit of leading-edge digitalization to enhance the experience of retail and commercial customers is streets ahead of the competition according to The Asset magazine. International Banker magazine said that the bank is “already an unequivocal digital trailblazer in both the Philippines and Southeast Asia.” 

Fueled by its commitment to ‘Tech Up, Pilipinas’ and enable inclusive prosperity, UnionBank stays true to its promise that no one—not its customers, not its colleagues, not its countrymen, gets left behind.