UnionBank raises $100M more from offshore notes

Aboitiz-led Union Bank of the Philippines has brought in an additional $100 million from an offshore issuance of five-year senior notes, riding on strong investor appetite for its borrowing program.

In a disclosure to the Philippine Stock Exchange on Monday, UnionBank said it had increased the size of its 3.369-percent senior notes to $500 million. The notes will mature in November 2022.

The notes were issued under the bank’s medium-term note (MTN) program established last November 14. MTN is a type of medium-term, flexible debt program that allows an issuer to tweak its debt issuance to meet its financing needs.

“The proceeds of the notes will be used to refinance UnionBank’s existing liabilities, expand its funding base and for other general corporate purposes,” the disclosure said.

The notes are rated Baa2 by Moody’s and will be listed on the Singapore Stock Exchange. Baa2 is the ninth highest rating in Moody’s long-term corporate obligation rating, indicating that the obligations are considered medium-grade and subject to moderate credit risk.

Citigroup Global Markets Limited and Standard Chartered Bank acted as joint lead managers and bookrunners for the transaction.

Earlier, Union Bank’s board approved the setting up of a euro MTN program amounting to as much as $1 billion.

Union Bank’s issuance attracted large orders from investors across Asia, Europe, Middle East and Africa. —DORIS DUMLAO-ABADILLA