Aboitiz family’s UnionBank launches bond offering

Union Bank of the Philippines, the banking arm of the Aboitiz conglomerate, kicked off the issuance of new retail bonds under its P50 billion bond program.

The newly offered bonds consist of senior fixed rate Series F bonds maturing in 2025 with an annual interest rate of 6.5625 percent per annum, and senior fixed rate Series G bonds due 2026 with an interest rate of 6.6800 percent per annum.

Each tranche will be offered with a minimum aggregate principal amount of ₱1 billion, and an oversubscription option.

The offer period will run until November 29.

Simultaneouly with the sale of the new bonds, UnionBank is granting holders of its ₱8.115 billion 2.750 percent fixed rate Series C bonds due on December 9 the opportunity to option to sell these bonds to UnionBank. In return, holders can subscribe to any of the new bonds.

In February, UnionBank raised P11.86 billion through a stock rights offering. A portion of this, specifically P300 million has been allocated to UnionBank’s digital arm to support its expansion initiatives.

The bulk of the SRO proceeds, amounting to P10.96 billion, was used to provide loans to corporate and individual clients.