San Miguel Corporation (SMC) unit Bank of Commerce (BankCom) on Tuesday opened the subscription period for its P5-billion dual tranche bonds.

The bonds consist of two-year Series C Bonds with a fixed interest rate of 6.1942 percent per annum, and five and a quarter-year Series D Bonds with a fixed interest rate of 6.3494 percent per annum. Interest will be paid quarterly.

BankCom is open to upsizing the bond offer depending on investors’ demand.

Third tranche

In a disclosure to the Philippine Stock Exchange on Tuesday, BankCom said the Series C and Series D Bonds are the third tranche of its P50-billion Peso Bond Program.

The bonds’ offer period runs until 30 January. Listing with the Philippine Dealing & Exchange Corp. is slated on 19 February.

Minimum investment is P100,000 with increments of P50,000.

Eligible individual investors holding the Series D Bonds until maturity will receive a net fixed interest rate of 6.3494 percent per annum.

Issue proceeds

“Proceeds from the issuance will be used for management of the bank’s balance sheet, diversification of funding sources, and general corporate purposes,” BankCom said.

For the first nine months of 2024, BankCom reported a 10 percent growth in net income to P2.2 billion from P2 billion in the same period in 2023. This reflected an 11 percent growth in net interest income as BankCom said it registered strong performance across its lending businesses.

BankCom posted a return on equity at 9.27 percent, surpassing its initial outlook of 4.22 percent.