BankCom raises P7.5B from bond debut

Bank of Commerce (BankCom) more than doubled the size of its maiden bond sale to P7.5 billion after receiving strong demand from investors.

The lending affiliate of conglomerate San Miguel Corp. said the two-year Series A bonds had been listed on the Philippine Dealing & Exchange Corp. on Friday.

“The overwhelming response from both institutional and retail investors on our first ever peso bond issuance underscores the market’s confidence in BankCom’s performance and our growth potential,” BankCom president and CEO Michelangelo Aguilar said in a statement.

“We thank the investors for their trust and recognition of BankCom’s creditworthiness, stability, and strong commitment to achieving our business plans and objectives,” he added.

The bonds will pay a coupon rate of 5.0263 percent per annum through 2024. Minimum denominations were set for P100,000 and increments of P50,000 thereafter.

BankCom earlier hired ING Bank N.V., Manila Branch (ING) and Philippine Commercial Capital, Inc. (PCCI) as joint lead arrangers and joint bookrunners for this issuance. The bank also acted as a selling agent, together with ING and PCCI.

“Proceeds from this issuance will be used to match long-term assets with long-term funding to reduce the bank’s interest rate risk,” the lender said.

BankCom ended the first quarter with total assets of P206.38 billion, up 5.6 percent. Loans and receivables were up 16.3 percent to P84.67 billion.

The debt sale forms part of its P20-billion bond program.

Philippine Rating Services Corp. earlier gave the lender a credit score of “PRS Aa plus” with stable outlook. This suggests BankCom’s “strong capacity to meet its financial commitments relative to that of other Philippine corporates,” the statement showed.

—Miguel R. Camus INQ