BankCom launches dual-tranche bond offer to raise at least P5 billion
Bank of Commerce has opened a dual-tranche bond offer as it seeks to raise at least P5 billion from the domestic market. The fundraising supports the bank’s balance sheet management, funding diversification and broader corporate needs, with the public offer running until Nov. 4 unless closed earlier.
Highlights
- BankCom launches dual-tranche bond offer of at least P5 billion with 1.5-year Series E at 6.9882% and three-year Series F at 7.6563%, minimum investment P100,000.
- Issuance is the fourth tranche under the P80-billion Peso Bond Program, offer period until Nov. 4, issuance and listing set for Nov. 11.
- Proceeds will manage balance sheet and diversify funding; first-half net income rose 13% year-on-year to P2.11 billion, shares closed down 0.79% at P10.06.
Offer terms and issuance timeline
As reported by BusinessWorld Online, BankCom starts offering 1.5-year Series E Bonds at 6.9882% and three-year Series F Bonds at 7.6563%, with a minimum investment of P100,000 and additional increments of P50,000 thereafter.The bonds are being issued as the fourth tranche of the bank’s updated P80-billion Peso Bond Program. Issuance and listing are scheduled for Nov. 11, while the offer period runs until Nov. 4 unless the bank ends it earlier.
BankCom has appointed ING Bank N.V., Manila Branch, Philippine Commercial Capital, Inc., Security Bank Capital Investment Corp., and Standard Chartered Bank as joint lead arrangers and joint bookrunners. The bank is also serving as a selling agent alongside those institutions.
Funding strategy and recent performance
Proceeds from the issuance are allocated for management of the bank’s balance sheet, diversification of funding sources, and general corporate purposes. The fundraising follows BankCom’s previous domestic debt market transaction in January last year, when it raised P18 billion from another dual-tranche bond offer, more than three times its target amount.That earlier issuance included P10.00685 billion in two-year Series C Bonds priced at 6.1942% and P7.99315 billion in 5.25-year Series D Bonds at 6.3494%. BankCom also reports improving earnings, with second-quarter net income rising 14% to P1.13 billion and first-half profit increasing 13% year on year to P2.11 billion.
Its shares slip by eight centavos, or 0.79%, to close at P10.06 apiece.
Our earlier article on Philippine sovereign bond reforms outlined plans to adopt a new pricing convention for peso-denominated government bonds in 2027 and pursue inclusion in a major emerging-market bond index to broaden the investor base and improve liquidity. It also noted that these upgrades alone won’t guarantee stronger real-economy investment, highlighting persistent constraints in the corporate bond market such as high issuance costs and thin secondary-market liquidity.
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