China Bank to raise P5 billion from bonds

MANILA, Philippines — China Banking Corp. announced Thursday its plan to raise at least P5 billion through its maiden issuance of peso-denominated bonds.

In a disclosure to the stock exchange, the Sy-led lender said the bonds would carry an annual interest rate of 5.70% that will be paid on a monthly basis. Public offer period is from June 10 to 28 this year.

The notes have a tenor of 18 months and would mature in January 2021. The minimum investment is P100,000, with additional placements in increments of P50,000.

“We aim to provide retail investors with a good investment opportunity and enhance public participation in the capital markets while increasing our funding flexibility,” China Bank Chief Operating Officer Romeo Uyan Jr. said.

China Bank said the bond float is part of the company’s planned P75-billion fundraising program for the next three years to support its expansion and strategic initiatives.

It added that its plan to issue retail bonds and commercial papers was in line with its intention “to be an active participant in the ongoing economic expansion of the country and the government’s infrastructure initiatives.” — Ian Nicolas Cigaral