MANILA, Philippines — Gotianun-led East West Banking Corp. is raising at least P2 billion from the domestic debt market for its maiden bond issuance.
Rafael Algarra, senior executive vice president and treasurer at EastWest, said the bond offering would also pave the way for future issuances and strengthen the bank’s liquidity position by diversifying its sources of funding.
The fixed-rate bonds due 2023 carry an interest rate of 4.5 percent per annum to be paid quarterly for three years. Offer period is until Feb. 14 and listing on the Philippine Dealing and Exchange Corp. (PDEx) is on Feb. 21.
The bonds are sold through the selling agents, EastWest and Unicapital Inc., likewise the lead arranger of the fund raising activity.
“Through its maiden bond issuance, EastWest aims to serve its clients better by providing alternative investment products,” Algarra said.
The bank announced in June last year that it was planning to raise as much as P10 billion through the issuance of bonds in one or more tranches.
EastWest has been tapping the domestic market over the past few years via the issuance of long-term negotiable certificates of deposits (LTNCDs). It issued P10 billion worth of LTNCDs due 2022 in March 2017 and another P2.45 billion worth of LTNCDs due 2023 in June 2018.
EastWest is a subsidiary of Filinvest Development Corp. (FDC), one of the country’s leading conglomerates with a diverse range of interests including real estate, banking, sugar, hospitality, tourism, and power generation.