China Bank looking to raise up to P100 billion over three years
CHINA BANKING CORP. (China Bank) is looking to raise up to P100 billion through peso-denominated bonds over the next three years to support its business expansion.
The Sy-led bank told the local stock exchange on Thursday that its board of directors approved a program to raise up to P100 billion in retail bonds or commercial papers.
The papers will be issued in several tranches over the next three years, China Bank said in the statement.
The funds raised from these planned issuances will be used to expand the bank’s operations and for other initiatives.
“The proceeds shall be used to support the bank’s strategic initiatives and expansion program. This is also in line with the bank’s intention to be an active participant in the country’s economic recovery and expansion,” the lender’s statement read.
Market conditions will determine the timing of the first tranche of the program, the bank said when asked for further details.
China Bank raised P20 billion from issuance of three-year peso-denominated bonds last month, higher than its initial plan to borrow just P5 billion.
The papers carry a coupon rate of 2.5% per annum and will mature in 2024.
The latest issuance was the second drawdown from the bank’s P45-billion bond program launched last year, following the P15-billion issuance of two-year bonds in October.
The Sy-led lender also launched a $2-billion euro medium-term note program in September to support its general funding needs.
The bank saw its net profit climb by 19.8% to P12.071 billion in 2020 from P10.074 billion in 2019 on the back of a 30% growth in net interest income and strong trading gains.