BANK of Commerce (BankCom) is looking to raise at least P5 billion from a dual-tranche bond offer that it kicked off on Monday.
The bank is selling 1.5-year Series E Bond priced at 6.9882% and three-year Series F Bonds with a rate of 7.6563% for a minimum investment amount of P100,000 and increments of P50,000 thereafter, it said in a disclosure to the stock exchange.
The public offer period is set to run until Nov. 4 unless ended earlier, while issuance and listing is set on Nov. 11.
“The bonds will be issued as the fourth tranche of BankCom’s updated P80-billion Peso Bond Program,” it said.
“Proceeds from the issuance will be used for management of the bank’s balance sheet, diversification of funding sources, and general corporate purposes.”
BankCom appointed ING Bank N.V., Manila Branch (ING), Philippine Commercial Capital, Inc. (PCCI Capital), Security Bank Capital Investment Corp. (Security Bank Capital), and Standard Chartered Bank (SCB) as joint lead arrangers and joint bookrunners for the issuance.
The bank is also acting as a selling agent for the offering, together with ING, PCCI Capital, Security Bank Capital, and SCB.
BankCom last tapped the domestic debt market in January last year, raising P18 billion from another dual-tranche bond offer, more than three times the target amount.
Broken down, it raised P10.00685 billion via Series C Bonds that have a tenor of two years and a rate of 6.1942%, and P7.99315 billion from Series D Bonds with a tenor of 5.25 years at 6.3494%.
Proceeds from this issuance were set to be used for management of the bank’s balance sheet, diversification of funding sources, and general corporate purposes.
BankCom’s net income increased by 14% to P1.13 billion in the second quarter, with its first-half profit rising by 13% year on year to P2.11 billion.
Its shares slipped by eight centavos or 0.79% to end at P10.06 apiece. — Aaron Michael C. Sy