EastWest Bank exceeds target, raises P3.7-B in maiden bond offering
MANILA, Philippines — East West Banking Corp. (EastWest Bank) said Tuesday it borrowed P3.7 billion during its maiden bond issuance, higher than what it had hoped to raise amid strong demand from the public.
The banking arm of the Gotianun-led Filinvest Development Corp. told the local bourse it managed to surpass its initial target to raise P2 billion for its first bond offering.
The three-year debt papers — offered last week — carry an interest rate of 4.5% per annum. They were available for a minimum investment of P500,000 and increments of P100,000.
EastWest Bank hired Unicapital Inc. as lead arranger and selling agent for the transaction. The bonds will be listed at the Philippine Dealing and Exchange Corp. on February 21
“To our investors, we recognize that they are our partners in success and we assure them that we will continue to provide alternative investment outlets,” EastWest Senior Executive Vice President and Treasurer Rafael Algarra Jr. said in a statement.
EastWest Bank announced in June last year it was planning to raise as much as P10 billion through the issuance of bonds in one or more tranches.
The lender said its “strong liquidity position” allowed it to proceed with the offering in a bid to “expand the roster of investments the bank can offer to the public.”
Data from the central bank shows EastWest Banks is the 11th largest bank in the country in terms of total assets as of end-September last year.
In the third quarter of 2019, EastWest Bank’s net income grew 43% to P4.6 billion. Meanwhile, its total assets climbed 15% to P387.3 billion.
Shares in EastWest Bank went up 2 centavos or 0.17% to P11.46 apiece on Tuesday.
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