BankCom starts P5-B bond offering
By James A. Loyola
Bank of Commerce (BankCom), an affiliate of diversified conglomerate San Miguel Corporation, has started the P5-billion public offer of its peso bond issuance with an oversubscription option.
In a disclosure to the Philippine Stock Exchange, the bank said these bonds represent the second tranche of BankCom’s P20 billion Bonds Program. The Series B Bonds has a tenor of 1.5 years and a fixed interest rate of 6.5635 percent per annum.
The public offer period runs from April 30 to May 9, 2024 but may be shortened by the issuer. The Series B Bonds will be issued and listed on the Philippine Dealing & Exchange Corp. (PDEx) on May 16, 2024.
Proceeds from the Bonds will be used to refinance maturing debt obligations.
In 2023, BankCom marked its 60th anniversary with a record high net income of P2.8 billion. This was a 56 percent increase from the P1.8 billion it earned in the previous year, and considered the highest growth rate posted by a listed Philippine bank for the year.
At the end of 2023, Return on Equity stood at 9.52 percent, marking an improvement from the previous year's 7.01 percent and more than double the bank's IPO prospectus ROE of 4.22 percent.
The bank’s record high profit was backed by growth in its core lending business. Net Interest Income was up by P1.61 billion or 24 percent year on year. Growth was registered across all lending segments.
The Bank also saw growth on its service charges, fees and commissions driven by revenues from its investment banking, credit card, and trust businesses.
BankCom has appointed ING Bank N.V., Manila Branch (ING) and Philippine Commercial Capital, Inc (PCCI Capital) as Joint Lead Arrangers and Joint Bookrunners for this issuance. BankCom is also acting as a Selling Agent for the offering, together with ING and PCCI Capital.