Philippine Bank of Communications (PBCOM) has secured P7.7 billion through its maiden issuance of peso fixed-rate bonds as subscriptions for the debt instrument surged.

In a disclosure to the Philippine Stock Exchange on Tuesday, PBCOM said demand for the bonds rose 3.85 times higher than the initial programmed amount, prompting the bank to shorten its offer period by more than a week.

Market confidence

“This is a true sign of the market’s confidence in our efforts over the past years, which have delivered a solid track record in asset, revenue, and profit growth,” PBCOM president and chief executive officer Patricia May Siy said.

The peso bonds were listed on the Philippine Dealing & Exchange Corp. yesterday.

They have a maturity period of one and a half years and a fixed interest rate of 6.0796 percent per annum.

“Proceeds from the bond issuance will be utilized for general corporate purposes, including refinancing debt obligations, diversifying funding sources, and supporting loan growth,” PBCOM said in its disclosure to the local bourse.

The maiden peso bond issuance forms part of the bank’s entire peso bond program worth P15 billion.

Double-digit growth

PBCOM said it already registered in the first half of the year a double-digit growth in loans and receivables amounting to P90 billion, exceeding the level in 2023.

Accordingly, the bank’s total assets reached P148.7 billion or 12.2 percent higher than the level a year ago.

Founded in 1939, PBCOM continues to offer commercial banking services and has expanded operations to over 90 branches nationwide.