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