ASIA UNITED BANK Corp. (AUB) has started offering three-year peso-denominated bonds, with the lender targeting to raise at least P3 billion from its maiden issuance.
In a statement on Wednesday, AUB said the bonds, which are exempted from registration with the Securities and Exchange Commission (SEC), carry a coupon rate of 4.625% per annum.
The offer period started yesterday and is set to run until Oct. 30.
The bonds are targeted to be listed on the Philippine Dealing Exchange on Nov. 7.
“The AUB bonds are considered a solid investment due to the bank’s focused growth strategy, innovative systems, robust financial standing, and sound funding profile driven by an effective management team,” the bank said.
““With the bank’s history of steady growth and robust financial performance, supported by tailored and innovative customer touchpoints, the AUB bonds will definitely bring more value to our investors’ investment portfolio,” AUB President Manuel A. Gomez was quoted as saying.
China Bank Capital Corp. and First Metro Investment Corp. are the joint lead managers for the transaction. They will also act as selling agents alongside Amalgamated Investment Bancorporation.
Riccon DM Leonardo, AUB Assistant Vice President for PR and Corporate Communications, told BusinessWorld in an email that the issuance make up the first tranche of the bank’s P30-billion bond program announced last August.
Mr. Leonardo said the target for the issue is P3 billion “but (the bank has the) option to accept more…when the need arises or when we feel the market conditions are conducive.”
AUB shares inched up 0.70% or 40 centavos to close at P57.40 apiece on Wednesday. — LWTN