EastWest raises P3.7 billion from maiden bond issue

MANILA, Philippines — East West Banking Corp. raised P3.7 billion as investors swarmed its maiden bond issuance resulting in an oversubscription of almost twice the P2 billion offering.

Rafael Algarra, senior executive vice president and treasurer at EastWest, said the success of the bond issuance shows the trust and confidence of the public with banks.

 “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,” he said.

The fixed-rate bonds due 2023 carry an interest rate of 4.5 percent per annum to be paid quarterly for three years. The listing date on the Philippine Dealing and Exchange Corp. (PDEx) is on Feb. 21.

Selling agents EastWest and Unicapital Inc. were likewise the lead arrangers of the fund-raising activity.

The country’s 11th largest lender in terms of assets announced in June last year that it was planning to raise as much as P10 billion via the issuance of bonds in one or more tranches.

“Issuing a bond despite its strong liquidity position is a testament of EastWest’s commitment to continually expand the roster of investments the bank can offer to the public,” Algarra added.

EastWest is a subsidiary of Filinvest Development Corp. (FDC) of the late taipan Andrew Gotianun.  It is one of the country’s leading conglomerates with a diverse range of interests including real estate, banking, sugar, hospitality, tourism and power generation.

Earnings of one of the most consumer-focused banks jumped by 43 percent to P4.6 billion from January to September last year versus a year-ago level of P3.2 billion as revenues climbed by 11 percent to P21 billion from P18.9 billion.

The bank’s loan book posted a double-digit growth of 13 percent to P264.3 billion, while its deposit base went up by 10 percent to P291.6 billion. Its total assets grew by 15 percent to P387.3 billion.

As of end-September, EastWest has a total of 391 branches, with 212 in Metro Manila. Its total ATM network is 583, composed of 399 on-site ATMs and 184 off site ATMs.