Union Bank secures funds for expansion via retail bond offering

Aboitiz-led Union Bank of the Philippines has raised P5.8 billion from a new offering of local retail bonds, proceeds from which will supplement its funding base and support business expansion plans.

The three-year bonds carried a coupon rate of 6 percent, the bank said in a statement.

This is the second bond issuance by UnionBank, following the issuance of P11 billion worth of bonds on Dec. 7 last year.

The bank initially announced an offer size of P3 billion but ended up upsizing the deal after receiving strong demand from institutional and retail clients. The brisk demand also allowed UnionBank to price the bonds at the lower end of its guidance.

Hongkong and Shanghai Banking Corp. Ltd. (HSBC) and ING Bank N.V. Manila branch acted as joint lead managers and bookrunners for the transaction. HSBC and ING were also selling agents alongside UnionBank.

The bonds will be issued on June 3 and listed on the Philippine Dealing Exchange on the same day. —DORIS DUMLAO-ABADILLA