Union Bank of the Philippines is seeking to raise up to P30 billion through a new bond issuance as the Aboitiz-led lender strengthens its funding base and positions itself for future growth amid a still-evolving interest rate environment.
The bank, the country’s eighth-largest by assets, said its board of directors has approved the planned issuance under its existing P100-billion Peso Bond Program. The offering’s timing and final terms have yet to be determined and will depend on market conditions.
The planned fundraising follows UnionBank’s successful P16-billion dual-tranche bond offering in June last year, which attracted both retail and institutional investors. Proceeds were used to lengthen the bank’s liability profile, diversify funding sources, support business expansion, and meet other corporate requirements. The bonds were subsequently listed on the Philippine Dealing & Exchange Corp.
UnionBank continues to tap the domestic debt market to secure longer-term funding and manage liquidity as credit demand gradually improves alongside economic activity. Bond issuances also provide lenders with flexibility to support loan growth without relying solely on deposits.
The latest fundraising initiative comes at a time when the Bangko Sentral ng Pilipinas already started tightening monetary policy to tame surging inflation in the wake of the latest oil shocks.
The proposed issuance would represent nearly a third of the bank’s approved bond program, giving UnionBank ample room for additional capital market transactions should funding requirements increase.
