EPCI floated an initial $130 million in 10-year bonds last May 23 as part of its Tier 2 capital build-up as approved by the Bangko Sentral ng Pilipinas (BSP).
The issuance was 2.5 times oversubscribed and also performed well in secondary trading that another $70 million has to be floated to satisfy the investors, bringing total issuance to $200 million.
The bonds, which are exchangeable with those sold in the first issue, pay a coupon of 9.375 percent, with a maturity date in 2013 but callable by 2008. UBS Warburg was the sole bookrunner and co-lead arranger with Deutsche Bank in the earlier sale.
The May 23 offering, already the largest subordinated debt issue in the Philippines, had been originally marketed as a $100-million issue but was increased to $130 million to accommodate demand.
Officials of the country’s third largest banking network sought permission from the monetary authorities to sell an additional $70 million on May 29, as "it was encouraged by the over-subscription of the first issue and by the bonds’ positive performance in secondary markets to sell the $70 million issue."
The bank had conducted several roadshows in Manila and Singapore in early May, while engaging investors in Hong Kong and London via conference calls.
EPCI president & chief executive officer Rene J. Buenaventura said in a statement that , "Equitable PCI Bank has re-asserted its position in the Philippine market with its strong profitability and sound fundamentals."
Buenaventura admitted that the successful bond issue boosts the bank’s strategic plan to become a truly competitive third overall among the Philippines’ commercial banking system behind Metropolitan Bank and Trust Co. (Metrobank) and the Bank of the Philippine Islands (BPI).
"We are looking at double-digit growths this year especially with the bond issue for a lower Tier 2 capital raising activity," he said in an earlier interview.
EPCI reported a net income of P726 .79 million last year, up by over 400 percent from the P140.18 million recorded in the whole of 2001. It was higher by 45 percent from the original target of P500 million set in early 2002.
Bulk of the huge earnings came from fee-based income, treasury investments, and low interest expenses.