MANILA, Philippines — Publicly listed Asia United Bank Corp. (AUB) has raised P7 billion through its maiden peso-denominated bond issuance as investors swarmed the fund raising activity.
In a disclosure to the Philippine Stock Exchange (PSE), AUB said it concluded its three-year peso bond offering two days ahead of its original Oct. 30 schedule due to overwhelming demand from investors.
AUB announced an initial offer size of P3 billion, but ended the fund raising activity with P7 billion, more than two times the target. The bank said it decided to issue this volume as it was deemed to be the right balance between internal funding need and investor reach.
Proceeds from the bond issuance, which carried a coupon rate of 4.625 percent per annum, will be used for general corporate purposes.
“We are extremely pleased to have achieved this milestone for our first tranche at a time when competition is very high among bank and corporate issuers crowding the market for investment funds,” AUB executive vice president and head of Treasury Antonio Agcaoili said.
“Although we had to work within a tight timetable, the positive response we received is proof that AUB has attained a new level of customer preference that believe in our financial strength and operational capabilities in a highly competitive market environment,” he said.
AUB said the fund raising activity was done using a fully digital platform, showcasing the bank’s digital solutions that aim to make banking easier and more convenient.
“AUB’s maiden listing has a confluence of ‘firsts’ that we can celebrate. You are the first issuer to have made available an electronic system for clients to fill up and sign so-called Application to Purchase or ATP forms through an electronic device (iPad),” Philippine Dealing and Exchange Corp. (PDEX) president and chief operating officer Antonino Nakpil said.
China Bank Capital Corp. and First Metro Investment Corp. acted as the joint lead arrangers, while Amalgamated Investment Bancorporation also served as a selling agent together with AUB.
The bonds were issued on Nov. 7, 2019 and was listed with the Philippine Dealing and Exchange on the same date.
“The overwhelming demand this bond offer received is an undeniable affirmation of our growth, stability, and the journey we wish to continue to embark on with our clients, where their future and our commitment inevitably become one and the same,” AUB president Manuel Gomez said.
AUB earlier reported a 63 percent surge in net income to P2.6 billion in the first half amid the 25 percent increase in net interest income to P4.5 billion due to a combination of higher lending rates and volume.
Gomez earlier said the bank is bullish with the growth exhibited for the past six months.