Bank of Commerce (BankCom), an affiliate of diversified conglomerate San Miguel Corporation, has successfully raised P6.57 billion from its public offer of Peso bonds (Series B Bonds) at the close of the offer period on May 9, 2024.
In a disclosure to the Philippine Stock Exchange, the bank said the Offer was 1.3 times oversubscribed, evidencing strong demand from institutional and retail investors.
The Series B Bonds has a tenor of 1.5 years and a fixed interest rate of 6.5635 percent per annum. These bonds represent the second tranche of BankCom’s P20-billion Bonds Programme.
The bank said its Series B Bonds will be issued and listed on the Philippine Dealing & Exchange Corp. (PDEx) on May 16, 2024. Proceeds of the Offer will be used to refinance maturing debt obligations.
BankCom appointed ING Bank N.V., Manila Branch (ING) and Philippine Commercial Capital, Inc (PCCI Capital) as Joint Lead Arrangers and Joint Bookrunners and Selling Agents for the Offer. BankCom also acted as a Selling Agent for the Offer.
The Series B Bonds are exempt from registration pursuant to Section 9.1(e) of the Securities Regulation Code, and have not been registered with the Securities and Exchange Commission.
In 2023, BankCom marked its 60th anniversary with a record high net income of P2.8 billion. This was a 56 percent increase from P1.8 billion it reported 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 as 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.