UNION BANK of the Philippines, Inc. (UnionBank) is looking to buy back P6.8 billion worth of bonds due 2030.
“Please be informed that the board of directors of Union Bank of the Philippines at its meeting held on Dec. 2, approved the exercise of the call option (voluntary redemption) on its P6.8-billion unsecured subordinated debt eligible as Tier 2 capital due 2030, subject to prior approval of the BSP (Bangko Sentral ng Pilipinas),” the Aboitiz-led bank said in a disclosure to the stock exchange on Tuesday.
The bank in February 2020 raised P6.8 billion from the Tier 2 notes, higher than the initial P5-billion target. The issue was listed on the Philippine Dealing and Exchange Corp. that same month.
The Tier 2 notes carry an interest rate of 5.25% per annum, payable in arrears quarterly, and are set to mature on May 24, 2030.
They have a tenor of 10 years and three months and are callable in 5.25 years from the issue date or starting May 24, 2025.
UnionBank’s net income rose by 76% year on year to P3.5 billion in the third quarter. This brought its nine-month profit to P8.56 billion.
Its shares closed unchanged at P36.70 apiece on Tuesday. — AMC Sy
