China Banking Corp. said Thursday its plans to raise up to P100 billion from the debt market over the next three years to support expansion.
China Bank said in a disclosure to the stock exchange its board of directors approved the bank’s plan to raise fresh funds via issuances of retail bonds and commercial papers or both.
The debt papers will be issued in several tranches. “The proceeds shall be used to support the bank’s strategic initiatives and expansion programs,” China Bank said.
China Bank issued retails bonds worth P20 billion in February 2021 as second tranche from its P45-billion bond program launched in 2020.
China Bank, one the banking units of conglomerate SM Investments Corp., booked a record net income of P18.4 billion in nine months of 2024 on the back of sustained growth from core businesses.
Operating income rose 14 percent year-on-year to P46.3 billion, driven by higher interest income from loans, securities and other investments, coupled with growth in transaction-based income. Net interest margin improved to 4.4 percent.
China Bank chief finance officer Patrick Cheng earlier said the bank aimed to expand its loan book by 10 percent to 12 percent annually amid growing demand for both consumer and corporate credit.
China Bank is the country’s fourth largest private domestic bank with assets of P1.6 trillion as of end-September 2024.
Its loan portfolio hit P871.6 billion, up 14 percent from a year ago, as both business and consumer lending segments grew.
It has a nationwide network of more than 648 branches and 1,069 automated teller machines.