UNIONBANK of the Philippines, Inc. is looking to raise P5 billion in fresh funds. — BW FILE PHOTO

UNIONBANK OF THE Philippines, Inc. is seeking to raise P5 billion through unsecured subordinated notes.

In a filing with the local bourse on Wednesday, the bank said the unsecured subordinated notes qualifying as Tier 2 capital which will mature in 2030 will have an oversubscription period.

The lender said the notes have a yield of 5.25% per annum payable in arrears quarterly.

The issue could be upsized by up to P20 billion.

The notes, which were offered starting Feb. 4, will be available up to Feb. 14.

They are set to be issued on Feb. 24.

UnionBank said the notes will mature on May 24, 2030. Meanwhile, its call option date will be on May 24, 2025.

Investors can avail the bonds from P500,000 and in increments of P100,000 thereafter.

Hongkong and Shanghai Banking Corp. and Standard Chartered Bank will serve as the joint lead arrangers and bookrunners for the issuance.

The lenders will also be the selling agents for the bonds, alongside UnionBank.

The lender is also scheduled to redeem P7.2 billion worth of unsecured subordinated notes on Feb. 20 as it has exercised its call option for the papers.

The Aboitiz-led lender’s net profit grew 40% year on year to P8.5 billion in the first nine months of 2019.

UnionBank’s shares inched up by 0.76% or 45 centavos to P59.95 apiece on Thursday. — LWTN