PBCom eyes P2 billion from new bond issue

MANILA, Philippines — The Philippine Bank of Communications (PBCom) is looking to raise at least P2 billion, with an option to oversubscribe, from the first tranche of its new peso bond program.

In a disclosure to the Philippine Stock Exchange (PSE), PBCom said its board of directors approved the P15-billion bond program to be undertaken in multiple tranches.

“The board of directors likewise approved the first tranche issuance from the bond program with a target amount of at least P2 billion with an oversubscription option,” the bank said.

“The bond program will support the bank’s growth objective while simultaneously achieving diversification of its funding structure as well as reduce dependency on short-term funding sources,” it said.

The planned issuance of bonds under the PBCom’s bond program is still subject to the regulatory approvals and market conditions.

The bonds under the program could hold a minimum tenor of 1.5 years, to be determined depending on market demand. The interest rates would also be based on prevailing market rates.