Bank of Commerce looks to raise P5B from bonds

BANKCOM.COM.PH

BANK of Commerce (BankCom) is looking to raise at least P5 billion through series B notes due 2025, which will mark the second tranche of its peso bond program.

“Proceeds from the bonds will be used to refinance maturing debt obligations,” the listed bank said in a disclosure to the stock exchange on Tuesday.

The public offer period for the one-and-a-half year notes began on Tuesday and is set to run until to May 9, unless closed early by the bank.

The bonds will be issued and listed on the Philippine Dealing & Exchange Corp. on May 16.

BankCom has priced the notes at 6.5635% per annum, payable quarterly.

The notes will be sold for a minimum amount of P100,000 and in multiples of P50,000 thereafter.

“BankCom appointed ING Bank N.V., Manila Branch and Philippine Commercial Capital, Inc. (PCCI Capital) as joint lead arrangers and joint bookrunners for this issuance. BankCom is also acting as a selling agent for the offering, together with ING and PCCI Capital,” it said.

The notes will be issued under its P20-billion bond program.

The first issuance under the program was made in July 2022, with the lender raising P7.5 billion from two-year series A bonds, more than double the original issue size of P3 billion.

The bonds carry a rate of 5.0263% per annum.

BankCom saw its net income rise by 55.67% year on year to P2.802 billion in 2023 amid higher revenues.

Its shares went up by 18 centavos or 2.90% to end at P6.39 apiece on Tuesday. — A.M.C. Sy