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

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)