Listed Union Bank of the Philippines (UnionBank) has secured $300 million in fresh funds from its latest issuance of US dollar-denominated notes.
In a disclosure on Friday, the Aboitiz-led bank said the amount generated from the senior unsecured notes was oversubscribed, with orders reaching $1.3 billion, or over four times the offered amount.
The issue fetched a coupon rate of 2.125 percent per annum and a tenor of five years.
It attracted interest from 117 quality institutional investors. In terms of distribution, the notes were allocated predominantly in Asia (84 percent) and the rest in Europe, Middle East and Africa (16 percent).
The notes, rated “Baa2” by Moody’s Investors Service, are a drawdown from UnionBank’s existing $2-billion medium-term note program.
Proceeds will be used “to extend term liabilities, expand funding base, and for other general corporate purposes,” the bank said.
Citigroup Global Markets Limited, MUFG Securities Asia Limited and Standard Chartered Bank served as the joint lead managers and joint bookrunners.
Earlier, UnionBank reported a net income of P4.5 billion in the first six months of 2020, a 6-percent decline from the year-earlier amount, after accelerating provisioning for loan losses to P7 billion.
“The bank deemed it prudent to add reserves ahead of the potential impact of the Covid-19 (coronavirus disease 2019) crisis on its credit portfolio,” the lender explained.
Total assets grew by 7 percent to P751.5 billion and total deposits rose by 19 percent to P510.4 billion.
Revenues soared by 55 percent to P22.1 billion, which UnionBank said was “driven by the sustained increase in net interest income, as well as higher trading gains for the year.”
Net interest income surged by 41 percent to P13.8 billion “due to higher earning assets and margin improvement,” it added. Other income surged by 86 percent to P8.3 billion, mainly due to trading gains.
UnionBank shares decreased by 10 centavos or 0.18 percent to close at P54.40 each on Friday.