Union Bank lists P5.8B in bonds

Aboitiz-led Union Bank of the Philippines has returned to the local bond market with the listing of P5.8 billion worth of new securities on the Philippine Dealing and Exchange Corp. (PDEx) yesterday.

The three-year bonds carried a coupon rate of 6 percent and marked the second bond issuance by Union Bank following the P11 billion worth of bonds floated last Dec. 7.

Proceeds from the new offering will supplement its funding base and support business expansion plans.

The bank announced an initial P3-billion offering size, but ended up upsizing the deal after receiving strong demand from institutional and retail clients. The brisk demand also allowed Union Bank 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 Union Bank.

The new offering brings Union Bank’s total issuance to P16.8 billion, of which P5.8 billion was drawn from the newly established P39-billion bond and commercial paper program.

Meanwhile, this listing brings the total volume of new listings on local fixed-income platform PDEx so far this year to P154.49 billion. There are P1.17 trillion worth of securities issued by 49 companies listed on PDEx. —DORIS DUMLAO-ABADILLA