Union Bank of the Philippines (UnionBank), the banking arm of the Aboitiz Group, raised P16 billion from the issuance of fixed rate bonds due to strong demand from investors.
UnionBank, in a disclosure to the stock exchange, said the P16 billion bond offering was issued via a dual-tranche offering under its P100 billion peso bond shelf registration program.
This marks UnionBank’s return to the domestic capital markets since 2023.
UnionBank said the offering saw strong interest from institutional and retail investors, with both tranches exceeding their initial targets of P5 billion each.
The 1.5-year Series H Bonds due 2026, with an interest rate of 5.88 percent per annum, raised a total of P9.2507 billion.
The three-year Series I Bonds due 2028, with an interest rate of 6.02 percent per annum, raised a total of P6.7493 billion.
The bank plans to use the proceeds from the issuance to extend term liabilities, expand its funding base, support business expansion plans and for other general corporate purposes.
The bonds will be listed on the Philippine Dealing & Exchange Corp. on June 26.
ING Bank N.V., Manila Branch, Philippine Commercial Capital Inc. and Standard Chartered Bank are the joint lead arrangers and bookrunners on the transaction.
