CITYSAVINGS Bank, Inc. has raised P5 billion from its corporate note issuance meant to finance its asset expansion.
Some P1.5 billion out of the issuance will mature in three years, while the remaining P3.5 billion were notes with a tenor of five years, CitySavings Bank’s listed parent UnionBank of the Philippines, Inc. said in a filing with the local bourse on Tuesday.
The offer was oversubscribed as the notes were met with robust demand from financial institutions, the listed bank said.
The thrift lender’s corporate notes were “priced at the lowest end of the pricing range,” it added.
“The proceeds will be used to finance the [CitySavings’] bank’s asset expansion, particularly its loan portfolio, to extend the maturity profile of its liabilities, and to fund the bank’s other general corporate requirements,” UnionBank said.
BDO Capital & Investment Corp. served as the lead arranger and bookrunner for the issuance. Meanwhile, the issue’s co-arrangers were the Development Bank of the Philippines, Philippine National Bank, and Robinsons Bank Corp.
“We will continue to grow and evolve to become the finest mass market bank in the Philippines as we introduce more innovative solutions for a seamless customer experience,” CitySavings President and Chief Executive Officer Lorenzo T. Ocampo was quoted as saying.
Earlier this month, UnionBank also raised P9 billion via its own bond offering — P8.115 billion from three-year notes and another P885 million from 5.25-year bonds. — L.W.T. Noble