EastWest raises P 3.7B from bond offer

Gotianun-led EastWest Bank has raised P3.7 billion from a local bond debut that exceeded its own expectations.

The consumer-focused bank was targeting to raise only P2 billion from this maiden bond offering.

The bonds have a tenor of three years and carry an interest rate of 4.5 percent a year.

“The success of the bond issuance shows the trust and confidence of the public with EastWest Bank,” Rafael Algarra Jr., EastWest senior executive vice president and treasurer, said in a press statement on Tuesday.“To our investors, we recognize that they are our partners in success and we assure them that we will continue to provide alternative investment outlets,” he added.

Many banks are now tapping the local bond market to diversify their funding sources and reduce their reliance on volatile deposits as they oil the funding needs of the growing economy.

In the case of EastWest, the fundraising is seen to expand the roster of investments it can offer to the public.

Investment house Unicapital Inc. served as lead arranger and selling agent of the bonds.

The bonds will be listed on Feb. 21, 2020.

EastWest caters primarily to the financial needs of consumers and middle market corporates.

Since 2012, EastWest has been trading under the symbol “EW” on the Philippine Stock Exchange. It is a subsidiary of Filinvest Development Corp., one of the country’s leading conglomerates with interests in real estate, banking and sugar. —Doris Dumlao-Abadilla INQ