PBCom looks to raise P2 billion from corporate bonds

PHILIPPINE Bank of Communications (PBCom) is looking to raise at least P2 billion from the issuance of corporate bonds, it said on Tuesday.

This comes after its board of directors approved to increase the size of the bank’s corporate bond program to P30 billion from P15 billion previously, it said in a disclosure to the stock exchange.

The papers to be issued will form the second tranche of the upsized bond program.

The bonds will have a tenor of at least 1.5 years, based on the indicative terms, with the final tenor to be determined at the time of issuance and subject to investor feedback.

It added that the timing of the issuance will be decided based on market conditions.

PBCom earlier this month fully redeemed P7.69 billion in corporate bonds it issued on Nov. 5, 2024 after its maturity on May 5.

That issue saw strong demand as the amount raised was almost four times the initial P2-billion target. The 1.5-year papers were priced at a fixed interest rate of 6.0796% per annum

Proceeds from the issuance were used for general corporate purposes, including refinancing debt obligations, diversifying funding sources, and supporting loan growth.

PBCom’s net income declined by 14.97% to P402.13 million in the first quarter amid higher provisioning.

Its shares closed at P15.72 apiece on Tuesday, down by 98 centavos or 5.87% from Monday’s finish. — A.M.C. Sy