The goals of Union Bank of the Philippines (UnionBank) are now within reach.
The banking institution led by the Aboitiz family successfully accumulated P6.8 billion.
UnionBank will reportedly utilize this amount to support its expansion target financially.
Furthermore, the funding raised would reportedly bolster the sources of finance of the firm, making them more diversified.
Philippine daily newspaper The Philippine Star reported that UnionBank issued Series A unsecured subordinated notes.
The bank stated in a disclosure to the Philippine Stock Exchange (PSE) that their comeback to the local debt market enabled them to collect a substantial amount of capital.
UnionBank confirmed that the figure they collected is P1.8-billion higher than the actual issue dimension of P5 billion.
In terms of assets, the financial services provider is the 10th largest banking institution in the Philippines.
Investors supported UnionBank’s capital-raising activity, swarming the notes that are due in 2030.
The bank’s 10.25-year Series A unsecured subordinated notes have the eligibility of being classified as Tier 2 capital.
Moreover, they bear an interest rate of 5.25 percent per annum. UnionBank’s notes are callable in 5.25 years as well.
For the fundraising activity, Asia United Bank served as the market maker.
Meanwhile, foreign financial firm HSBC joined multinational banking institution Standard Chartered Bank.
They functioned as selling agents, joint lead arrangers, and book-runners.
UnionBank worked as the limited selling agent during the fundraising event.
The Bangko Sentral ng Pilipinas permitted UnionBank last December to issue Tier 2 notes within a one-year duration.
These forms of supplementary capital are worth up to P20 billion. Philippine banking institutions that have tapped the local debt market were able to gather P72.6 billion.
They performed fundraising activities through the Philippine Dealing and Exchange Corporation.
The banks issued long-term negotiable certificates of deposits (LNTCDs) and bonds.
UnionBank is among these financial firms. In February 2018, it was able to accumulate P3 billion through the issuance of LTNCDs.
These products of the bank are due in 2023. Furthermore, UnionBank succeeded in raising P11 billion.
It is because, in December 2018, it issued two-year fixed-rate bonds.
Finally, the bank was able to amass P5.8 billion. UnionBank’s issuance of Philippine peso-denominated bonds
in June last year made this feat possible.
The bonds are due in three years. On Wednesday, February 26, 2020, Union Bank of the Philippines, Incorporated (PSE: UBP) closed at P57.60 per share.
This last trade price of the company’s stock is down by 0.10 or 0.17 percent.
The total value reached P409,481.00. As for the 52-week high of UnionBank, it is at P64.05.
Meanwhile, the PSE recorded the 52-week low of the bank’s stock at P56.00.