Asia United Bank of the Rebisco Group said Monday it successfully raised P7 billion in its maiden bond issuance on strong demand from investors.
AUB said in a statement it would use the proceeds to fund general corporate activities. The bonds have a coupon rate of 4.625 percent a year for a three-year tenor.
AUB initially announced a P3-billion offering but concluded the transaction with close to three times the target. Due to the overwhelming demand, the bank had to end its offering period two days ahead of the original Oct. 30 schedule.
“The bank decided to issue only P7 billion as it was deemed to be the right balance between internal funding need and investor reach,” AUB executive vice president and head of treasury Antonio Agcaoili said.
“We are extremely pleased to have achieved this milestone for our first tranche at a time when competition is very high among bank and corporate issuers crowding the market for investment funds,” he said.
“Though we had to work within a tight timetable, the positive response we received is proof that AUB has attained a new level of customer preference that believe in our financial strength and operational capabilities in a highly competitive market environment,” he said.
AUB president Manuel Gomez said the overwhelming demand received by the bond offer was an affirmation of the bank’s growth and stability.
Philippine Dealing & Exchange Corp. president and chief operating officer Antonino Nakpil said in a speech during the listing ceremony of the AUB bonds that the bank’s first bond issuance and listing were just the start of a mutually beneficial and strengthening relationship between AUB and bondholders.
China Bank Capital Corp. and First Metro Investment Corp. acted as the joint lead arrangers and Amalgamated Investment Bancorporation as selling agent along with AUB.
The bank issued the bonds on Nov. 7, 2019 and listed them with Philippine Dealing & Exchange on the same date.