UnionBank offers dual-tranche bonds

UNIONBANK of the Philippines, Inc. is offering dual-tranche bonds to raise at least P3 billion in fresh funds.

The Aboitiz-led lender will issue three-year and 5.25-year bonds with an interest rate of 2.75% and 3.375%, respectively, it said in a disclosure to the local bourse on Monday.

The offer period started on Monday and is set to run until Dec. 2, unless closed earlier.

The fixed-rate bonds will be issued, settled and listed on the Philippine Dealing & Exchange Corp. on Dec. 9.

Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank are the joint lead arrangers and bookrunners for the transaction. They will also serve as selling agents along with UnionBank.

UnionBank booked a net income of P4.2 billion in the third quarter, higher by 11% in the comparable year-ago period.

This brought its nine-month net profit to P8.5 billion, 0.9% lower from a year ago, due to higher loan loss reserves, which hit P7.5 billion in the first nine months due to the continued weakness in the economy amid the coronavirus pandemic.

UnionBank shares closed steady at P68.50 apiece on Monday.