Union Bank of the Philippines (“UnionBank”) successfully raised ₱18.168 billion of Peso denominated fixed rate bonds via a dual tranche offering. This is the largest bond issuance by UnionBank from its ₱50 billion Bonds Program, which received strong demand from both retail and institutional investors. This enabled the Bank to upsize the issuance to over nine times its initial minimum offer size of ₱2 billion for the two tranches.
The 1.5Y Series F Bonds due 2025 raised a total of ₱10.3385 billion and carries an interest rate of 6.5625% per annum while the 3Y Series G Bonds due 2026 raised a total of ₱7.8295 billion and carries an interest rate of 6.6800% per annum (collectively, the “New Bonds”).
Concurrent with the issuance of the New Bonds, UnionBank also implemented the country’s first public non-sovereign bond exchange which extended to the holders of its ₱8.115 billion 2.750% Fixed Rate Series C Bonds due December 9, 2023 (the “Exchangeable Bonds”) the option to sell to UnionBank such Exchangeable Bonds in exchange for subscription to any of the New Bonds (the “Bond Exchange”).
The Bond Exchange settlement date is on December 4, 2023, with ₱236.7 million of Exchangeable Bonds to be exchanged with the New Bonds.
The New Bonds will be issued and listed on the Philippine Dealing & Exchange Corp. on December 5, 2023.
“Fuelled by our passion to address the needs of our customers, we introduced the Bond Exchange program to provide a reinvestment option for existing investors. We are grateful for the support of our investors as their confidence in the Bank allowed us to raise our largest Peso bond issuance to date.” said Johnson L. Sia, Treasurer and Head of Global Markets.
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