PBCom raises P7.7B from maiden bond offering

Philippine Bank of Communications (PBCom) has raised P7.7 billion from its oversubscribed maiden bond offering last month, signaling a more optimistic market as interest rates begin falling.

The billionaire Lucio Co-led bank on Tuesday said the bonds, which will mature in one and a half years and promise a yield of 6.0796 percent per annum, were 3.85 times oversubscribed from the initial amount of P2 billion.

“This is a true sign of the market’s confidence in our efforts over the past years, which have delivered a solid track record in asset, revenue and profit growth,” PBCom president and CEO Patricia May Siy said in a statement.

READ: PBCOM seeks to raise P2B from maiden bond sale

According to the bank, proceeds will be used for general corporate purposes, including refinancing debt obligations and supporting loan growth.

ING Bank NV Manila Branch was the sole arranger and bookrunner. It also acted as the selling agent, along with PBCom.

The bonds, which form part of PBCom’s P15-billion bond program, were listed on the Philippine Dealing and Exchange Corp. (PDEx) on Tuesday.

PBCom’s first peso-denominated bond offer came after the Bangko Sentral ng Pilipinas slashed its key policy rate by a total of 50 basis points to 6 percent.

Rate cuts typically make fixed-income securities, such as bonds, more attractive due to higher yield.

The PDEx has seen at least P266.4 billion worth of domestic bonds this year, representing nearly 70 percent of its 400-billion goal for the entire year.

As of end-June, PBCom’s total assets reached P148.7 billion, up by 12.2 percent.

Its earnings in the January to June period inched up by 2.81 percent to P1.03 billion on growth in its loan portfolio.

Net interest income jumped by 13.85 percent to P2.62 billion, buoyed by an increase in service charges, fees and commissions.

PBCom was one of the three Philippine companies recognized in Forbes Magazine’s 2024 list of 200 “Best Under a Billion” publicly traded companies in the Asia Pacific for posting robust growth despite high inflation across the globe.