China Bank raising P15 billion via domestic notes issue

MANILA, Philippines — China Banking Corp. is raising as much as P15 billion by tapping the onshore debt market anew via the issuance of peso-denominated notes.

In a disclosure to the Philippine Stock Exchange (PSE), China Bank said its board of directors approved the planned fund raising activity during a regular meeting last Wednesday.

China Bank said the planned fund raising activity is subject to the approval by the appropriate regulatory authorities.

The bank said it would use the proceeds of the note issuance to support its strategic initiatives and expansion program.

In April, the listed bank established a P75-billion bond program for the next three to give it more options to raise funds and reduce reliance on deposits.

Of the total amount, the bank has so far raised P30 billion via its maiden fixed-rate bond offering last June.

The listed bank is also looking at raising up to P20 billion via the issuance of long-term negotiable certificates of deposits (LTNCDs) to support asset generation and expansion.

China Bank booked a double-digit 17 percent increase in earnings to P4.2 billion in the first half from P3.56 billion in the same period last year amid sustained loans and deposits build-up and greater contribution from fee-based businesses.

William Whang, president at China Bank, said the bank has laid down the strong foundation for solid growth.

“Our strong financial performance in the first half reflects our good fundamentals that provide the foundation for sustainable growth.  As we continue to build on our strengths, we are confident about meeting our goals for the year and delivering value to our customers and other stakeholders,” Whang said.

The bank’s deposit base grew by 15 percent to P750 billion in the first semester from P653.4 billion in the same period last year amid the steady increase in checking and savings accounts.

Its loan book also expanded by 12 percent to P533 billion from P469.4 billion due to stronger demand across all customer segments.

Total resources of the bank stood at P908 billion, 18 percent higher than last year’s P768.4 billion.

Likewise, total capital funds rose by eight percent to P90.4 billion from P83.6 billion. Its common equity tier 1 ratio and total capital adequacy ratio stood at 12.9 percent and 13.8 percent, respectively.