UNIONBANK of the Philippines, Inc. is looking to issue fresh debt as well as redeem old papers.

UNIONBANK of the Philippines, Inc. wants to issue up to P20 billion unsecured subordinated debt as well as to redeem voluntarily P7.2 billion worth of unsecured subordinated debt due 2025.

The Aboitiz-led lender said in a disclosure to the local bourse that its board of directors, after its meeting last Aug. 23, approved to issue unsecured subordinated debt worth up to P20 billion eligible as Tier 2 Capital pending the Bangko Sentral ng Pilipinas’ approval.

Likewise, it also plans to exercise its call option to redeem P7.2-billion worth of unsecured subordinated debt eligible as Tier 2 capital due 2025, also pending the approval of the regulator.

To recall, UnionBank issued P7.2 billion unsecured debt qualifying as Tier 2 notes in November 2014.

The debt carried a coupon rate of 5.375% per annum and due to mature in 2025, callable starting Feb. 20, 2020.

Attributable net income of the bank in the first semester of the year stood at P4.8 billion, up 2% from P4.72 billion recorded in the same period in 2018.

UnionBank shares closed at P59.05 each on Tuesday, unchanged from its Friday finish. — Mark T. Amoguis

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