PHILIPPINE BANK of Communications (PBCom) is looking to raise at least P2 billion though its first offering of peso-denominated bonds, it said on Monday.
“Philippine Bank of Communications announces the public offering of its maiden peso bond issuance, with an initial size of P2.0 billion with an oversubscription option,” the lender said in a disclosure to the stock exchange.
“Proceeds from this bond issuance will be utilized for general corporate purposes, including refinancing debt obligations, diversifying funding sources and supporting loan growth,” PBCom said.
The Series A bonds have a tenor of one-and-a-half years and carry a fixed interest rate of 6.076% per annum.
They will be issued out of PBCom’s P15-billion bond program, which was approved by its board in March.
The bond offer period began on Monday and is set to run until Oct. 28, unless ended earlier by the bank.
The Series A notes are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on Nov. 5, PBCom said.
PBCom appointed ING Bank N.V. Manila Branch as the sole arranger and bookrunner for the transaction. ING Bank will also serve as a selling agent for the bonds along with PBCom.
Development Bank of the Philippines’ Trust Banking Group was appointed as trustee for the offering.
PBCom’s net income grew by 16.08% year on year to P532.3 million in the second quarter amid higher revenues.
This brought its net earnings for the first half to P1.03 billion, up by 2.85% from the same period in 2023.
PBCom’s shares were last traded on the stock exchange on Oct. 10, closing at P15.20 each. — AMC Sy
