UnionBank starts offerings of 1.5-year, 3-year senior bonds

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UNION BANK of the Philippines, Inc. (UnionBank) is looking to raise a combined P2 billion from two separate offerings of senior fixed-rate bonds under its P50-billion borrowing program.

The Aboitiz-led bank on Monday began offering 1.5-year senior fixed-rate Series F bonds and three-year senior fixed-rate Series G bonds, it said in a stock exchange disclosure.

The bank aims to raise at least P1 billion in fresh funds from each bond tenor, with an oversubscription option and with the offers set to run until Nov. 29, unless adjusted.

The 1.5-year papers due in 2025 have an interest rate of 6.5625% per annum, while the three-year bonds due 2026 carry a yield of 6.68% a year.

The papers will be issued under UnionBank’s P50-billion bond program.

ING Bank N.V. Manila Branch and Standard Chartered Bank are the joint lead arrangers and bookrunners for the transaction. They are also the selling agents for the offer, along with UnionBank.

The new bonds are scheduled to be issued, settled, and listed on The Philippine Dealing & Exchange Corp. on Dec. 5.

Meanwhile, UnionBank also began an exchange offer for holders of its fixed-rate Series C bonds maturing on Dec. 9. The size of the Series C bond issuance stood at P8.115 billion, with the interest rate per annum at 2.75%.

Holders of these papers can sell them back to UnionBank in exchange for their subscription to any of the new bonds currently being offered by the listed lender.

The bond exchange period will run until Friday, unless adjusted.

“Any interest accruing to the exchangeable bonds from the date of the last interest payment up to and including the issue date of the new bonds will be paid on the bond exchange settlement date on Dec. 4,” the bank added.

UnionBank saw its net income drop by 58.99% year on year to P1.65 billion in the third quarter as the bank set aside more loan loss provisions in the period versus the prior year.

The bank’s shares declined by 45 centavos or 0.75% to close at P59.50 apiece on Monday.


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