Union Bank of the Philippines has returned to the domestic capital market for the first time since 2023 and successfully raised P16 billion through a dual-tranche peso bond offering under its expanded P100 billion bond program.
The Aboitiz-led bank said on Wednesday that the offering attracted strong demand from both institutional and retail investors, with each tranche exceeding its P5 billion target.
“Proceeds from the issuance shall be used to extend term liabilities, expand funding base, support business expansion plans, and for other general corporate purposes,” the bank said.
The 1.5-year Series H Bonds due 2026 raised P9.2507 billion at an interest rate of 5.88 percent per annum, while the 3-year Series I Bonds due 2028 raised P6.7493 billion at 6.02 percent per annum. The minimum investment was P100,000, with increments of P50,000.
The bonds will be listed on the Philippine Dealing & Exchange Corp. on 26 June.
ING Bank N.V., Manila Branch, Philippine Commercial Capital Inc., and Standard Chartered Bank acted as joint lead arrangers and bookrunners, and also served as selling agents along with UnionBank.
UnionBank reported a 28.5 percent drop in net income to P1.4 billion in the first quarter due to one-time costs, despite an 8.4 percent rise in revenues to P19.4 billion.
Net interest income rose 14.4 percent to P15.4 billion, driven by strong growth in consumer loans, which now make up 62 percent of the bank’s loan portfolio.