More banks tapping onshore debt market for add’l funds

MANILA, Philippines — More Philippine banks are tapping the onshore debt market to raise additional funds via the issuance of bonds, commercial papers and other debt instruments.

Caloocan-based Philippine Business Bank (PBB) raised P3 billion via the issuance of corporate notes due 2022 to finance the bank’s growing funding requirements and capitalize on attractive lending opportunities.

The fund raising activity arranged by BDO Capital & Investment Corp. is part of the bank’s P10 billion debt program approved by its board of directors in March.

PBB is the country’s fifth largest thrift bank in terms of assets with P94.84 billion as of end-March.

On the other hand, Robinsons Bank Corp. raised P5 billion as investors swarmed the offering of 2021 bonds that carry an interest of 5.125 percent per annum.

The amount was double the original issue size of P2.5 billion set by Robinsons Bank.

The bank said the fund raising exercise was four times oversubscribed after it received P10 billion worth of commitments from qualified institutional buyers.

BDO Capital also acted as sole issue manager, bookrunner and underwriter for the fund raising activity.

Meanwhile, Philippine Savings Bank (PSBank) listed P6.3 billion worth of fixed rate bonds due 2021 at the PDEx platform last July 24.

The amount raised by the thrift bank arm of Metropolitan Bank & Trust Co. (Metrobank) was more than double the original issue size of P3 billion. The bonds fetched 5.6 percent per annum.