ABOITIZ-led publicly-listed bank Union Bank of the Philippines (UnionBank) has raised P18.168 billion from its peso-denominated fixed rate bonds issued via a dual tranche offering.
In a disclosure to the Philippine Stock Exchange (PSE), UnionBank said this is the largest bond issuance by UnionBank from its P50 billion Bonds Program.
“Fuelled by our passion to address the needs of our customers, we introduced the Bond Exchange program to provide a reinvestment option for existing investors,” said Johnson L. Sia, treasurer and head of Global Markets.
“We are grateful for the support of our investors as their confidence in the Bank allowed us to raise our largest Peso bond issuance to date,” he added.
The 1.5-year Series F Bonds that are due in 2025 raised a total of P10.3385 billion and carried an interest rate of 6.5625 percent per annum.
The 3-year Series G Bonds that are due in 2026 raised a total of P7.8295 billion and carries an interest rate of 6.68 percent per annum.
UnionBank also implemented the country’s first public non-sovereign bond exchange which extended to the holders of its P8.115 billion 2.75 percent Fixed Rate Series C Bonds due in December 9, 2023 (the “Exchangeable Bonds”) the option to sell to UnionBank such Exchangeable Bonds in exchange for subscription to any of the New Bonds (the “Bond Exchange”).
The Bond Exchange settlement date is on December 4, 2023, with P236.7 million of Exchangeable Bonds to be exchanged with the New Bonds.
The New Bonds will be issued and listed on the Philippine Dealing & Exchange Corp. on December 5, 2023.
ING Bank N.V., Manila Branch and Standard Chartered Bank are the Joint Lead Arrangers and Bookrunners for the New Bonds. They are also the Selling Agents for the offering of the New Bonds together with UnionBank.