Manila Bulletin

Union Bank raises US$300M from five-year notes is­sue

- Business · Finance · Philippines · PSE · U.S. Treasury · Asia · Union Bank of California, N.A. · Union Bank of the Philippines

Union Bank of the Philip­pines, rated Baa2 (Sta­ble) by Moody’s, has suc­cess­fully priced its $300 mil­lion US dol­lar-de­nom­i­nated Reg­u­la­tion S only of­fer­ing 5-year se­nior un­se­cured notes, a draw­down from the Is­suer’s US$2 bil­lion Medium-Term Notes Pro­gram. In a dis­clo­sure to the Philip­pine Stock Ex­change, the bank said the Notes were is­sued with a fixed coupon of 2.125 per­cent per an­num, payable semi-an­nu­ally. “With or­ders over US$1.3 bil­lion, the Notes suc­cess­fully at­tracted in­ter­est from 117 qual­ity in­sti­tu­tional in­vestors, equiv­a­lent to a 4.3 times over-sub­scrip­tion,” Union Bank said. It added that, “The Notes were priced at 195 ba­sis points (bps) above the 5-year US Trea­sury yield, which was 35 bps tighter than ini­tial price guid­ance.” Pro­ceeds from the is­suance will be used by Union Bank to ex­tend term li­a­bil­i­ties, ex­pand fund­ing base, and for other gen­eral cor­po­rate pur­poses. In terms of dis­tri­bu­tion, the Notes were al­lo­cated pre­dom­i­nantly to Asia (84 per­cent), with the re­main­ing 16 per­cent to Europe, Mid­dle East and Africa (EMEA). (James A. Loy­ola)

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