PBCOM plans ₱2-B bond issuance

Philippine Bank of Communications (PBCOM), a lender controlled by businessman Lucio Co, is raising at least ₱2 billion from the first tranche of its peso-denominated bond program.

In a disclosure to the Philippine Stock Exchange (PSE), the bank said its Board of Directors has approved the Pbcom’s ₱15 billion peso-denominated bank bond program which will be issued in multiple tranches.

The bonds will have a minimum tenor of 1.5 years, to be determined depending on market demand, while the interest rate will be determined based on the prevailing market rates.

Proceeds from the bond issuances will be used by the bank for general corporate purposes, including the refinancing of debt obligations, diversify funding sources, and support loan growth.

"The Bond Program will support the Bank’s growth objective while simultaneously achieving diversification of its funding structure as well as reduce dependency on shortterm funding sources," the bank said.

In the same meeting, the PBCOM Board of Directors likewise approved the first tranche issuance from the Bond Program with a target amount of at least ₱2 billion with an oversubscription option.

“Actual issuance of bonds under the Bond Program shall be subject to regulatory approvals and market conditions,” the bank said.

PBCOM registered a net income of P1.4 billion as of the third quarter of the year 2023, 5.4 percent higher than the P1.3 billion earned during the same period last year.

The bank said this is attributable to ₱229.7 million higher operating income largely from ₱346.9 million better trading performance. (James A. Loyola)