Union Bank of the Philippines (UnionBank) announced its successful return to the domestic capital markets, raising a total of ₱16.0 billion through a dual-tranche offering of peso-denominated fixed-rate bonds. This landmark transaction, executed under its increased PHP 100 billion bond program, marks UnionBank’s first foray into the local debt market since 2023 and underscores strong investor confidence in the Bank.
The offering garnered significant interest from both institutional and retail investors, with both tranches exceeding their initial targets of ₱5 billion each due to overwhelming demand.
The 1.5-year Series H Bonds due 2026 successfully raised a total of ₱9.2507 billion and carry an interest rate of 5.88% per annum. Concurrently, the 3-year Series I Bonds due 2028 raised ₱6.7493 billion, carrying an interest rate of 6.02% per annum (collectively, the “Bonds”). The minimum investment amount for the Bonds was set at ₱100,000, with increments of ₱50,000 thereafter, making them accessible to a wide range of investors.
Proceeds from this successful issuance will be strategically utilized to extend UnionBank’s term liabilities, expand its funding base, support ongoing business expansion plans, and for other general corporate purposes, further strengthening the Bank’s financial position and growth initiatives.
The bonds are scheduled for listing on the Philippine Dealing & Exchange Corp. (PDEX) on June 26, 2025.
ING Bank N.V., Manila Branch (ING), Philippine Commercial Capital, Inc. (PCCI Capital), and Standard Chartered Bank (SCB) served as the Joint Lead Arrangers and Bookrunners for this transaction. These institutions, alongside UnionBank, also acted as the selling agents for the offering of the bonds.
