CHINA BANKING Corp. (China Bank) raised P20 billion from its issuance of three-year bonds to be used for its expansion programs and other strategic initiatives.
The issued volume was four times its original offer of P5 billion, the lender said in a statement on Thursday.
“This successful issuance represents a strong start of the year for China Bank. The strong demand we garnered underscores the investing public’s sustained confidence in China Bank amid these challenging times,” China Bank President William C. Whang was quoted as saying.
The papers carry a coupon rate of 2.5% per annum to be paid monthly and are set to mature in 2024.
“The proceeds from the offer will be used to support China Bank’s strategic initiatives and expansion programs,” the lender said.
China Bank Capital Corp. served as the issue coordinator, structuring advisor, joint lead arranger and joint bookrunner for the transaction.
Meanwhile, the Hongkong and Shanghai Banking Corp. and Philippine Commercial Capital, Inc. were joint lead arrangers, joint bookrunners, and selling agents for the bond sale.
This issuance was the second from the bank’s P45-billion bond program established in 2020. China Bank in October raised P15 billion via an offer of two-year bonds.
China Bank’s net earnings increased 21% to P3 billion in the third quarter of 2020 from P2.5 billion in the same period in 2019, supported by the growth of its core businesses.
This brought the bank’s nine-month net profit to P8.2 billion, higher by 6.7% from P6.9 billion in the comparable 2019 period.
China Bank shares rose by five centavos or by 0.21% to close at P24.10 apiece on Thursday.
Source: BusinessWorld