ASIA UNITED Bank Corp. (AUB) will allow the early redemption of its unsecured 10-year Tier 2 notes maturing in 2025 following approval from the central bank.
“Notice is hereby given by AUB to its noteholders exercising the early redemption option and hereby redeems all of the outstanding notes amounting to P5 billion on the redemption date,” it said in a filing with the local bourse on Tuesday.
“AUB shall pay the redemption amount, which shall be 100% of the face value of the notes plus accrued and unpaid interest to all noteholders as of book closure date,” AUB said.
The bank said the Bangko Sentral ng Pilipinas’ Monetary Board approved the early redemption option for the notes in its Resolution No. 1263 dated Oct. 3.
The book closure date for the papers is set on Feb. 23 while redemption is on Feb. 25.
Following the book closure date, the notes will not be up for secondary trading and there will be no more modifications in the accounts.
“Principal and accrued interest shall be paid through the paying agent to all noteholders on record as of the closed period as appearing in the pertinent books of the registrar,” AUB said.
The notes up for redemption were issued by AUB in 2015 to build up its capital base while complying with Basel III regulations. They are set to mature in 2025.
The unsecured subordinated notes were priced at 5.625%.
AUB’s net profit rose 19% to P1.456 billion in the three months ended September from P1.223 billion the year prior. However, its nine-month net income was down 0.8% to P3.752 billion from P3.786 billion as it boosted loan loss provisions amid the crisis.
The bank’s shares closed at P44.90 apiece on Tuesday, up by 90 centavos or 2.05% from its previous finish. — L.W.T. Noble