First Metro, UCPB manage P1.5-B Quedancor bond

The Quedan and Rural Credit Guarantee Corp. (Quedancor) has issued a tranche 2 multi-series bond worth P960 million. Quedancor is a government financial institution mandated to promote rural productivity and generate livelihood and income opportunities.

The recent bond issue concludes a total offering of P1.5 billion, with the first tranche worth P540 million issued last April 8. It was oversubscribed prompting Quedancor to increase the size of the offering from the original P1 billion to P1.5 billion.

This was the first time that Quedancor tapped the bond market. The multi-series bonds were issued to banks and insurance companies given the bonds’ eligibility as alternative compliance for agri-agra requirements and as admitted reserve assets, respectively.

United Coconut Planters Bank and First Metro Investment Corp., the investment banking subsidiary of Metrobank, were the joint issue managers and lead arrangers for the multi-series offer. The Land Bank of the Philippines was appointed trustee for the issue.

The P1.5-billion bonds were issued in a series of three, four and five years based on a 25-25-50 volume ratio. Series A, B, and C amounted to P375 million, P375 million, and P750 million respectively.

Quedancor president and chief executive officer Nelson Buenaflor said proceeds from the bonds issue will be used to expand livelihood loans to rural entrepreneurs through its Ginintuang Masaganang Ani-Countrywide Assistance for Rural-Urban Employment and Services (GMA-CARES) Income Augmentation and Livelihood Loan Program.

Quedancor implements various lending programs to service the financial requirements of its clients. These programs fall under agriculture, agrarian, and aqua production loans; microfinancing for the urban and rural poor; and salary loan programs for government employees.