UnionBank upsizes peso bond program

UNION BANK of the Philippines, Inc. (UnionBank) completed the upsizing of its bond program to P100 billion on May 9, with plans of multiple issuances.

It may sell the balance of unissued and non-outstanding unsecured and unsubordinated peso bonds in such form, amount, tenor, number of tranches and at a certain rate, it said in a statement on Tuesday.

The lender’s board approved the increase in the bond program on Feb. 28, when UnionBank also approved the issuance of $800 million in debt out of its euro medium-term note program and P30 billion in bonds from the expanded peso fundraising program.

The bond program started on April 26, 2019 at an initial amount of P39 billion. On Oct. 25, 2023, UnionBank increased it to P50 billion.

The bank last tapped the domestic bond market through the issuance of 1.5-year and three-year senior bonds in December 2023, when it raised P18.168 billion. This was higher than the combined issue size of at least P2 billion, or P1 billion for each tenor.

UnionBank raised P10.34 billion via the 1.5-year senior fixed-rate Series F bonds due in 2025 with an interest rate of 6.5625% per annum.

Meanwhile, the lender raised P7.8295 billion through the senior fixed-rate three-year Series G bonds due in 2026 with an annual yield of 6.68%. The notes are part of UnionBank’s then P50-billion bond program.

ING Bank N.V. Manila Branch and Standard Chartered Bank were the joint lead arrangers and bookrunners for the transaction. They were also the selling agents for the offer, along with UnionBank.

UnionBank shares closed at P34.50 apiece on Tuesday, up 7.48% or P2.40 from Friday. — Aaron Michael C. Sy