Asia United Bank (AUB) has concluded its P5-billion unsecured subordinated Basel 3-compliant Tier-2 notes
issue that will allow the bank to strengthen its capital base.
AUB President Abraham T. Co said the sale proceeds will be used to strengthen the bank’s capital base and boost capital adequacy in line with the requirements of the Bangko Sentral ng Pilipinas.
“Having a stronger capital base is important in supporting our ambition to become one of the top 10 banks in the Philippines,” Co said in a regulatory filing.
The unsecured subdebt notes were priced at 5.625 percent per annum. The issue date was set on
November 25. The notes have a maturity of 10 years, with a call option exercisable by the bank after five years and three months.
The minimum investment amount was P500,000, with additional increments of P50,000.
BDO Capital and Investment Corp. and Deutsche Bank AG Manila branch acted as joint lead arrangers, joint book runners and selling agents for the transaction.
Multinational Investment Bancorporation was also designated as selling agent and market maker, while AUB acted as limited selling agent for the transaction.
“By continuously embarking on ways to redefine our value proposition to our clients, we are staying a step ahead in innovation and technology, as well as reaching out to more customers who are starting to reap the benefits of our investment in expanding our network and in product offerings,” Co said.
AUB reported net income of P1.2 billion, 25 percent lower than year ago’s P1.6 billion.
Loans and receivables reached P86.4 billion, higher by 32.7 percent than a year ago’s P65.1 billion. Corporate and consumer lending grew by 41 percent and 19 percent, respectively.
AUB has 228 branches and 239 automated teller machines nationwide.