MOODY’S Investors Service has assigned a provisional investment grade rating on the $1-billion medium term note (MTN) program of Aboitiz-led Union Bank of the Philippines (UnionBank).
In a statement issued on Wednesday, Moody’s said it assigned a (P)Baa2 long-term foreign currency senior unsecured MTN program rating on the bank’s $1-billion note program.
“The provisional (P)Baa2 rating is in line with UnionBank’s Baa2 long-term deposit rating and reflects the structure of the proposed issuance,” it said.
The bank’s board approved in October the issue of foreign currency debt papers amounting to up to $1 billion or P50 billion to support its debt system and lending activities, UnionBank said earlier.
On Wednesday, the listed bank told the local bourse that it has completed the establishment of its MTN program.
“Pursuant to the programme, the bank may from time to time issue, offer and sell notes in the aggregate amount of up to one billion US dollars or its equivalent in other currencies. The notes shall be issued in such form, amount, currency, tenor, number of tranches, at such interest rate, and under such other terms and conditions as the Bank may subsequently determine or approve,” it said.
It said details regarding each issuance or tranche will be disclosed “at the appropriate time prior to each issue or tranche.”
UnionBank earlier reported consolidated net income of P2.2 billion for the first nine months of the year, up 19.3 percent from P1.8 billion in 2016.