UNION Bank of the Philippines is set to issue $400 million in fixed-rate senior notes under a medium term note (MTN) program.
“This is the debut drawdown under the MTN Program, and follows a successful roadshow to meet with Singapore and Hong Kong investors from 16 to 17 November 2017,” it said in a statement on Wednesday.
The notes will be issued at par with a yield of 3.369 percent per annum and with a maturity of five years.
The bank said proceeds of the notes will be used to refinance is existing liabilities, expand its funding base and for other general corporate purposes.
The bonds have been rated Baa2 or investment grade by Moody’s Investors Service, identical to the issuer rating given to UnionBank.
It said the issue was more than eight times oversubscribed, with orders reaching over $3.2 billion, while settlement will be on November 29, 2017.
“With a strong orderbook from the investors across Asia, Europe, Middle East and Africa, this transaction represents the largest orderbook garnered by a Philippine bank issuer,” it said.
Citigroup and Standard Chartered Bank are the joint arrangers of the MTN program and the joint lead managers and joint bookrunners for the transaction. China Bank Capital Corp. is the domestic lead manager for the transaction.
UnionBank recorded a net income of P6.4 billion in the first nine months, down 21 percent from the P8.1 billion posted in the same period in 2016.