Bank of Commerce (BankCom), the banking arm of San Miguel Corporation, has raised P7.5 billion from its maiden issuance of P7.5 billion 2-year Series A Bonds, 150 percent more than the original target of P3 billion.
In a statement, the bank said the aggregate orderbook for the issue exceeded the original target issue size by more than three times. This strong demand prompted BankCom to increase its issue size and end the offer period 10 days ahead of the original closing date.
BankCom has also listed the bonds on the Philippine Dealing & Exchange Corp. (PDEx) on July 29, 2022. The maiden issuance forms part of the Bank’s P20 billion Bond Program.
“The overwhelming response from both institutional and retail investors on our first ever Peso bond issuance underscores the market’s confidence in BankCom’s performance and our growth potential,” said BankCom President and CEO Michelangelo R. Aguilar.
BankCom’s bond was offered on July 11, 2022 at a coupon rate of 5.0263 percent per annum due 2024. Minimum denominations were set for P100,000 and increments of P50,000 thereafter.
Proceeds from this issuance will be used to match long-term assets with long-term funding to reduce the Bank’s interest rate risk.
“Diversifying our sources of funding will provide stability to propel loan growth in the corporate, SME and consumer sectors and effectively manage our net interest margin,” Aguilar added.
As of March 31, 2022, BankCom’s Total Assets stood at P206.38 billion, up by 5.63 percent from P195.39 billion the previous March.
During the same period, Loans and Receivables, which comprised the bulk, yielded a double-digit growth of 16.29 percent year-on-year from P72.81 billion in March 2021 to P84.67 billion as of March this year.
Last month, BankCom was assigned an Issuer Credit Rating of PRS Aa plus (corp.), with a Stable Outlook, by Philippine Rating Services Corporation (PhilRatings).
The said rating applies to a company having a strong capacity to meet its financial commitments relative to that of other Philippine corporates. Coupled with “Stable Outlook,” this indicates that the Issuer’s rating is likely to continue in the next 12 months.
“We thank the investors for their trust and recognition of BankCom’s creditworthiness, stability, and strong commitment to achieving our business plans and objectives,” Aguilar said.