UnionBank gets BSP nod to issue P10-B debt notes


Aboitiz-led Union Bank of the Philippines is set to issue P10 billion worth of unsecured subordinated debt notes in line with its plans to raise capital.

In a statement, UnionBank said the Bangko Sentral ng Pilipinas has approved its request to issue the P10 billion debt notes, which qualified as Tier 2 capital under Basel 3.

Tier 2 capital is a supplementary bank capital that includes items such as revaluation reserves, undisclosed reserves, hybrid instruments, and subordinated term debt.

UnionBank’s debt notes will mature in 10 years and three months with a fixed interest rate.

BDO Capital and Investment Corp. will be the issue manager, while China Banking Corp. will be the lead underwriter.

As of end-2013, UnionBank and its subsidiaries have 238 branches and 235 on-site and 34 off-site automated teller machines (ATM) nationwide.

UnionBank is the banking subsidiary of the Aboitiz Group through parent firm Aboitiz Equity Ventures Inc. (AEV). AEV also has businesses in power (Aboitiz Power Corp.); food manufacturing (Pilmico Foods); waste-to-fuel (Aseagas Corp.); and real estate (Aboitiz Land Inc.).


Please follow our commenting guidelines.

Comments are closed.