BankCom launches P5-B bond offer
San Miguel Corp. affiliate Bank of Commerce has launched a bond offer to raise at least P5 billion for balance sheet management, funding diversification and general corporate purposes.
In a disclosure on Monday, BankCom said the dual-tranche offering carries an oversubscription option, allowing it to raise more than the minimum issue size.
The issuance is the fourth tranche under the listed lender’s updated P80-billion peso bond program.
The Series E Bonds, due in 2028, have a tenor of 1.5 years and a fixed interest rate of 6.9882 percent per annum.
The Series F Bonds, due in 2029, carry a three-year tenor and a fixed interest rate of 7.6563 percent per annum.
Both series will pay interest quarterly in arrears. Investors must place at least P100,000, with additional investments in increments of P50,000.
The public offer runs from Oct. 26 until Nov. 4, although BankCom may shorten or extend the period.
The bonds are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on Nov. 11.
BankCom tapped ING Bank N.V., Philippine Commercial Capital Inc., Security Bank Capital Investment Corp. and Standard Chartered Bank as joint lead arrangers and joint bookrunners.
The four institutions will also serve as selling agents alongside BankCom.
The fundraising follows a 13-percent increase in the bank’s first-half net income to P2.11 billion from P1.86 billion a year earlier.
BankCom attributed its performance to strong core banking operations and client-related foreign exchange gains.
Return on equity reached 11.56 percent, while return on assets stood at 1.47 percent, marking its highest profitability levels since its initial public offering.
