Unionbank set to issue 5-year debt notes abroad | Inquirer Business

Unionbank set to issue 5-year debt notes abroad

By: - Business Features Editor / @philbizwatcher
/ 04:01 AM October 15, 2020

Aboitiz-led Union Bank of the Philippines has moved to lock in low-cost funds from the offshore debt market by drawing down from its $2-billion medium term notes (MTN) program.

The bank has mandated global banks Citigroup, MUFG and Standard Chartered Bank as joint bookrunners to arrange a series of fixed-income investor calls starting Oct. 14.

The intention was to issue five-year US dollar-denominated senior unsecured notes outside the US market as part of its MTN program, Union Bank disclosed to the Philippine Stock Exchange on Wednesday.

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Such MTN program allows an issuer to offer notes or perpetual capital securities in series or tranches from time to time.

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Union Bank increased its MTN program size to $2 billion earlier this month from an original size of $1 billion when it was first established in 2017.

Out of the original program size, a $500-million senior debt was drawn and issued in November 2017.

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Several companies, including banks, have tapped the offshore bond market to take advantage of record-low interest rates as major central banks unleashed aggressive monetary stimuli to counter the economic fallout from the pandemic. —Doris Dumlao-­Abadilla INQ

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TAGS: Business, UnionBank

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