Manila Bulletin

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)

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