Asia United Bank Corp. has approved the issuance of Tier 2 notes in a bid to raise funds for the company’s growth initiatives.
In a disclosure to the Philippine Stock Exchange, the bank said its board of directors approved the issuance of Tier 2 notes “to support the growth strategy of the bank.” The issue will still be subject to the approval of the Bangko Sentral ng Pilipinas.
No details on the issuance were laid out, but in a Reuters brief alert, the bank’s Executive Vice President Antonio Agcaoili said the bank is looking to raise up to P5 billion from the Tier 2 notes, possibly making the issuance in the fourth quarter of 2015.
Sought for comment, Elizabeth T. Miranda, AUB’s vice president and head of Corporate Planning and Investor Relations, said in a brief phone interview that the fundraising will be applied to expanding the bank’s branch network, as well as continuing its organic growth in 2015.
“The issue is to fund our growth strategy for the year…We have a conservative target for branch expansion. Moving forward, we’re also looking at organic growth. We also wanted to strengthen our capital in accordance with the Basel 3 requirements,” she said.
Incorporated in 1997, AUB is a mid-sized universal commercial bank that caters to consumers, large corporations, and small and medium enterprises. It has a 39 percent stake in subsidiary Asia United Leasing and Finance Corp., and holds 96.05 percent and 100 percent majority controlling interests in Rural Bank of Angeles and Cavite United Rural Bank, respectively.