MANILA – Union Bank of the Philippines, associated with the Aboitiz conglomerate, has initiated a significant bond program, announcing the sale of Series F and G senior fixed-rate bonds. This move is part of a larger P50 billion bond initiative aimed at expanding the bank’s capital base.
Starting today, UnionBank is offering these bonds with attractive interest rates of 6.5625% for Series F and 6.6800% for Series G. Both series have set a minimum aggregate principal amount of P1 billion and feature an oversubscription option, which will be available until November 29 (UTC).
In a strategic maneuver to provide more options to its investors, UnionBank also offers an exchange option for holders of its P8.12 billion worth Series C Bonds. This option is available until November 24 (UTC), ahead of the bonds’ maturity on December 9 (UTC). The bank’s selling agents for this offer include ING Bank N.V., Standard Chartered (OTC:) Bank (SCB), and UnionBank themselves.
Investors who opt for the bond exchange will see accrued interest settled by December 4 (UTC), and the new bonds are set to be listed on the Philippine Dealing & Exchange Corp. (PDEx) on December 5 (UTC).
ING Bank N.V., Manila Branch, and Standard Chartered Bank serve as Joint Lead Arrangers for this operation and are authorized to adjust the offer periods as needed. This financial strategy follows UnionBank’s successful stock rights offering in February, which raised P11.86 billion.
The funds from this previous capital-raising effort were allocated to bolster various segments of the bank’s operations: P300 million went towards expanding its digital arm, while a substantial P10.96 billion was directed towards providing loans to both corporate entities and individual clients.
The bank’s latest bond program aims to continue this trajectory of growth and investment in its services, ensuring that UnionBank remains a formidable player in the Philippine banking sector.
The details of these transactions were disclosed to the Philippine Stock Exchange as part of UnionBank’s ongoing efforts to keep investors informed about their financial maneuvers within their extensive P50 billion Bond Program plans.
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