Union Bank of the Philippines said Monday it will increase the size of its peso bond program by P11 billion to P50 billion from P39 billion to have flexibility in funding size in the future.
UnionBank said in a statement to the stock exchange the plan was approved in a board meeting on Friday.
“Please be informed that the board of directors of Union Bank of the Philippines at its regular meeting held on March 24, 2023, approved the increase in the bank’s PHP bonds program from P39 billion to P50 billion and the issuance of up to P30 billion out of the bonds program,” UnionBank said.
“With the growth in UBP’s balance sheet and increased capital base, the bank’s bond program is being increased… This provides flexibility on funding size in the future…,” UnionBank president Edwin Bautista told Manila Standard through a text message when asked for a comment.
“The bank has not yet established a timetable for future issuance,” Bautista said.
UnionBank completed its P12-billion stock rights offering that was well-received by shareholders. It offered 210.97 million common shares priced at P56.88 apiece.
The newly-issued shares were listed on the Philippine Stock Exchange on Feb. 6, resulting in total outstanding shares amounting to over 2.35 billion.
Proceeds from the SRO will be used to solidify the bank’s capital adequacy and financial strength and to execute its strategic growth initiatives by expanding its balance sheet to meet growing demand from its target markets.
The bank will deploy additional capital to UnionDigital, support loan availments by customers of both retail loans and corporate and commercial loans.
UnionBank posted a net income of P12.7 billion in 2022, almost flat from P12.6 billion in 2021
Revenues mainly came from net interest income and fee-based income, which compensated for the absence of trading gains. Net revenues reached a record P52.2 billion, or 16 percent higher year-on-year.