PBCom to raise P15 billion under new bond program

PHILIPPINE Bank of Communications (PBCom) is looking to raise P15 billion from its fundraising program approved on Thursday.

The bank’s board of directors on Thursday approved a P15-billion peso-denominated bond program, with funds raised to be used to refinance its debt obligations, diversify funding sources, and support loan growth, PBCom said in a disclosure to the local bourse on Thursday.

“The bond program will support the bank’s growth objective while simultaneously achieving diversification of its funding structure as well as reduce dependency on short-term funding sources,” PBCom said.

The total amount under the program will be issued in multiple tranches, the bank said. The bond offers will have at least 1.5 years, depending on market demand, it added.

The interest rate for each issue will also be determined based on prevailing market rates at the time of the offerings, the bank said.

The bank’s board on Thursday likewise approved the issuance of the first tranche of bonds under the new program with an issue size of at least P2 billion with an oversubscription option, PBCom added.

“Actual issuance of bonds under the bond program shall be subject to regulatory approvals and market conditions,” the lender said.

PBCcom’s attributable net income grew by 5.35% year on year to P1.36 billion in 2023. — AMCS