UnionBank looking to raise up to P30 billion via approved bond issue

UNION BANK of the Philippines (UnionBank) plans to raise up to P30 billion via a peso-denominated bond issuance, it said on Monday.

The bank’s board of directors, in a meeting on May 29, approved the issuance of up to P30 billion in papers under its existing peso bonds program, it said in a disclosure to the stock exchange.

“The bank has yet to establish the timetable and other details for the issuance,” UnionBank said.

“Any issuance shall be subject to market conditions.”

UnionBank last tapped the local debt market in June last year, raising P16 billion from a dual-tranche bond offer under its upsized P100-billion bond program following strong demand.

The issue marked the bank’s return to the domestic debt market after two years. Broken down, it raised P9.2507 billion via one-and-a-half-year series H bonds due 2026 at 5.88% per annum and P6.7943% from three-year series I notes at 6.02%, exceeding the initial target of P5 billion per tenor.

Proceeds were set to be used to extend the bank’s term liabilities, expand funding base, support business expansion plans, and for other general corporate purposes.

ING Bank N.V. Manila Branch, Philippine Commercial Capital, Inc., and Standard Chartered Bank were the joint lead arrangers and bookrunners for the transaction. Together with UnionBank, they were also the selling agents for the offering.

UnionBank’s net income surged by 167% year on year to P3.833 billion in the first quarter, backed by the strength of its core businesses.

Its shares closed at P25.05 apiece on Monday, dropping by P1.05 or 4.02% from the previous day. — Aaron Michael C. Sy