Unionbank raises P16B from dual-tranche bond offer

UnionBank has raised another P16 billion from the local debt market. 

MANILA, Philippines –  Union Bank of the Philippines has raised P16 billion from the domestic debt market, mainly to support its expansion plans.

In a stock exchange filing on Wednesday, the Aboitiz-led bank said the amount was raised from its dual-tranche offering composed of 1.5-year Series H bonds due 2026 at a rate of 5.88 percent a year, and three-year Series I bonds due 2028 at 6.02 percent a year.

READ: UnionBank ups bond plan to P100B

“Proceeds from the issuance shall be used to extend term liabilities, expand funding base, support business expansion plans and for other general corporate purposes,” Unionbank said in its disclosure.

The bonds will be listed on the Philippine Dealing and Exchange Corp. on Thursday, June 26.

Unionbank’s notes issuance is part of its upsized P100-billion bond program that was approved in 2019.