EastWest Bank raises P3.7B from bond issue
EAST WEST Banking Corp. (EastWest Bank) raised P3.7 billion from its maiden issuance of fixed-rate bonds, more than its initial target following strong demand from investors, it said on Tuesday.
EastWest Bank said in a disclosure to the local bourse that the total amount raised was higher than its program of P2 billion.
The bonds comprise the first tranche of the bank’s P10-billion fund-raising program announced in June last year. The papers have a tenor of three years and carry an interest rate of 4.5% per annum to be paid quarterly.
The bonds were offered from Feb. 10-14 for a minimum investment of P500,000 and increments of P100,000 thereafter.
“The success of the bond issuance shows the trust and confidence of the public with EastWest Bank,” Rafael S. Algarra, Jr., EastWest Bank senior executive vice-president and treasurer, was quoted as saying in the statement.
Mr. Algarra previously said the bond issuance is meant to diversify EastWest Bank’s funding sources and strengthen its liquidity position.
Unicapital Inc. served as the lead arranger and selling agent of the bonds.
The bonds are set to be listed at the Philippine Dealing and Exchange Corp. this Friday, Feb. 21.
EastWest Bank’s net earnings surged at end-September 2019 from higher revenues due to fees, improved margins, higher gains from trading activities, as well as lower credit costs.
The bank’s net profit jumped by 43% in the first nine months of 2019 to P4.6 billion. The bank reported a return on equity of 14%, while its total assets increased by 15% to P387.3 billion.
EastWest Bank’s shares closed at P11.46 apiece on Tuesday, two centavos or by 0.17% from Monday’s close of P11.44 each. — LWTN
