EastWest Bank to exercise call option on P5-B notes

EAST WEST Banking Corp. will redeem P5 billion worth of notes. — BW FILE PHOTO

EAST WEST Banking Corp. (EastWest Bank) has secured central bank’s approval of its request to exercise its call option on unsecured subordinated notes worth P5 billion, effective next year.

In a disclosure on Wednesday, EastWest Bank said it got the Bangko Sentral ng Pilipinas’ (BSP) nod on Dec. 13, allowing the bank to exercise its call option and redeem its P5-billion unsecured subordinated notes, which were originally due in 2025.

The bank said it will pay the call price equal to the 100% of the principal amount together with the accrued interest to all noteholders.

The call option date is scheduled on Jan. 4 while the actual redemption date is on Jan. 6.

The last day of trading and settlement of the notes will be on Jan. 2.

“Any payment of principal or interest under the notes shall be made in the proper amounts, net of taxes and fees, if any, through the mode elected by the noteholder,” the bank said.

EastWest’s shares inched up 0.47% or six centavos to close at P12.96 apiece on Wednesday.