Philippine Bank of Communications (PBCOM) announced its first peso bond issuance worth P2 billion, following a double-digit growth in loan demand in the first half.

PBCOM reported to the stock exchange that the float is part of a P15-billion bond program.

“Proceeds from this bond issuance will be utilized for general corporate purposes, including refinancing debt obligations, diversifying funding sources and supporting loan growth,” the commercial bank said.

The P2-billion bonds have a tenor of one and a half years and a fixed interest rate of 6.0796 percent per annum.

For PDEX listing

The offer period for the debt instrument runs until 28 October.

For the secondary market, the bonds will be listed on the Philippine Dealing & Exchange Corporation (PDEX) on 5 November.

PBCOM designated ING Bank N.V. Manila as the sole arranger, bookrunner, and co-selling agent while the Development Bank of the Philippines serves as trustee.

Despite high interest rates, PBCOM reported a double-digit growth in loans and other receivables amounting to P90 billion from January to June.

Meanwhile, the bank’s total assets grew by 12.2 percent to P148.7 billion.

Given its strong performance, the universal bank shared PBCOM was named among Forbes Asia’s Best Under a Billion list for this year.

It included the top 200 small and medium listed firms in the Asia Pacific with annual sales below $1 billion.