PBCom raises P7.7B from peso bond offer

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PHILIPPINE Bank of Communications (PBCom) raised about P7.7 billion from the maiden issuance of fixed-rate peso bonds that were listed on the Philippine Dealing and Exchange Corp. on Tuesday.

The one-and-a-half-year Series A bonds, which carry a fixed interest rate of 6.0796 percent per year, comprised the first tranche under a P15-billion bond program.

“The offering of our peso fixed-rate Series A bonds due was closed more than a week ahead of schedule [due] to robust demand, resulting in an oversubscription of 3.85 times the initial amount,” PBCom President and CEO Patricia May Siy said.

The bond offer started on Oct. 14 and ended on Oct. 18, ahead of the original closing date of Oct. 28.

“This is a true sign of the market’s confidence in our efforts over the past years, which have delivered a solid track record in asset, revenue, and profit growth,” Siy added.

Proceeds will be used for general corporate purposes, including refinancing debt obligations, diversifying funding sources and supporting loan growth.

PBCom tapped ING Bank N.V. Manila Branch (ING) as the sole arranger and bookrunner of the bond offer, while both PBCom and ING served as the selling agents.

In September, PBCom received an issuer credit rating of “PRS Aa minus” with a “stable” outlook from Philippine Rating Services Corp.

PBCom is a midsized player in the domestic banking industry, with total assets of P148.6 billion as of midyear 2024.

The bank’s net income for the first six months of 2024 stood at P1 billion, unchanged from last year, as the 28.4-percent growth in its gross interest income was offset by elevated interest and operating expenses.

On Tuesday, PBCom shares fell 0.12 percent to P16.28 each.

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