UNION Bank of the Philippines (UnionBank) raised P18.168 billion of Peso-denominated fixed rate bonds via a dual tranche offering.
This is the largest bond issuance by the bank from its P50 billion Bonds Program, which received strong demand from both retail and institutional investors.
This enabled the bank to upsize the issuance to over nine times its initial minimum offer size of P2 billion for the two tranches.
The 1.5Y Series F Bonds due in 2025 raised a total of P10.3385 billion and carry an interest rate of 6.5625 percent per year while the 3Y Series G Bonds due in 2026 raised a total of P7.8295 billion and carry an interest rate of 6.6800 percent per annum.
UnionBank also implemented the country’s first public non-sovereign bond exchange which extended to the holders of its P8.115 billion 2.750 percent Fixed Rate Series C Bonds due Dec. 9, 2023, the option to sell to UnionBank such exchangeable bonds in exchange for subscription to any of the new bonds.