China Banking Corp. raised more than P15 billion after concluding its fixed rate bond offering this week.
The Sy-owned bank said in a disclosure on Wednesday that the offering—in denominations of P100,000 and increments of P50,000 thereafter—closed on October 5, which is ahead of the original October 14 schedule, thanks to robust demand. Offer period began on September 28.
The 2-year bonds carry a fixed rate of 2.75 percent per annum.
Proceeds of the transaction are earmarked for the bank’s strategic initiatives and expansion plans.
Shares in China Bank rose by 0.46 percent, or 10 centavos, to close at P21.75 each amid the 0.72-percent dip for the benchmark index on Wednesday.
“We are grateful for the strong investor support for our second peso bond issuance,” China Bank President William C. Whang said. “The overwhelming demand speaks of the investing public’s trust and confidence not only in the bank but also in the capital markets in these challenging times.”
China Bank said that the bonds will be coming from its P45-billion bond and commercial paper program. These will be listed on the Philippine Dealing and Exchange Corp. on October 22.
China Bank Capital Corp. served as the issue coordinator, structuring advisor and bookrunner of the transaction.
Meanwhile, the listed bank tapped Hongkong and Shanghai Banking Corp. Ltd., Philippine Commercial Capital Inc. and Standard Chartered Bank as the joint lead arrangers and selling agents.
In September, the bank’s board of directors green-lighted its plans to tap the international financial market via $2-billion medium term note program.
“The proceeds of this program will be used to support the Bank’s general funding requirements,” China Bank said.
The bank has yet to disclose further details on the matter.
In the first half, China Bank saw its net income grow by 24 percent to P5.2 billion year-on-year. This translated to return on equity of 10.64 percent and return on assets of 1.07 percent for the period.
The bank’s loan portfolio rose by 11 percent to P593 billion in the first semester as it continued to provide loans across market segments. The bank said its asset quality has remained healthy with a nonperforming loan (NPL) ratio at 1.6 percent and NPL coverage at 146 percent.