PBCom raises P7.7 billion from maiden offering of peso bonds

PHILIPPINE Bank of Communications (PBCom) has raised P7.693 billion from its maiden offering of fixed-rate peso bonds, almost four times the initial P2-billion plan, it said on Tuesday.

The bonds have a tenor of one-and-a-half years and were priced at a fixed interest rate of 6.0796% per annum, PBCom said in a disclosure to the stock exchange.

“Proceeds from the bond issuance will be utilized for general corporate purposes, including refinancing debt obligations, diversifying funding sources, and supporting loan growth,” it said.

The bank listed the bond issue on the Philippine Dealing & Exchange Corp. on Tuesday.

“The offering of our peso fixed rate Series A bonds due 2026 was closed more than a week ahead of schedule due to robust demand, resulting in an oversubscription of 3.85 times the initial amount. This is a true sign of the market’s confidence in our efforts over the past years, which have delivered a solid track record in asset, revenue, and profit growth,” PBCom President and Chief Executive Officer Patricia May T. Siy said.

The bank began selling the bonds on Oct. 14, with the offer period initially scheduled to run until Oct. 28.

The bonds represent the first tranche of PBCom’s P15-billion peso bond program, which was approved by its board of directors in March.

ING Bank N.V. Manila Branch was the sole arranger for the transaction. It also acted as a selling agent along with PBCom.

PBCom’s net income grew by 16.08% year on year to P532.3 million in the second quarter amid higher revenues.

This brought its net earnings for the first half to P1.03 billion, up by 2.85% from the same period in 2023.

PBCom shares went down by two centavos or 0.12% to close at P16.28 apiece on Tuesday. — A.M.C. Sy