UNIONBANK EYES P 1B IN PIONEERING DIGITAL BOND SALE

Aboitiz-led Union Bank of the Philippines (UnionBank) plans to raise P1 billion through a pioneering “digital bond” offer that would run until May 27 this year.

The bond sale would be launched using the pilot blockchain technology-powered digital registry and depository platform of the Philippine Depository & Trust Corp., the lender said in a statement on Monday.

The debt paper would mature in 1.5 years, with an annual yield of 3.25 percent.

UnionBank said the digital bonds were part of a P39-billion bond program.

Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank were hired as joint lead arrangers and bookrunners. They were also hired as the selling agents for the offering together with UnionBank.

The lender, part of the family conglomerate Aboitiz Equity Ventures Inc. (AEV), has been raising funds to help finance expansion.

Earlier this month, it announced the completion of a P40-billion stock rights offering (SRO), the proceeds of which would be used to pay for its takeover of American banking giant Citi’s domestic business.

In that offer, UnionBank issued about 617.2 million common shares priced at P64.81 each.

The share offer received strong participation from UnionBank’s existing investors, led by principal shareholders AEV, Social Security System and Insular Life Assurance Company Ltd.

“The offer was almost completely subscribed after the first round with the remaining shares distributed to ... shareholders that expressed interest in additional subscriptions. The SRO was heavily oversubscribed at the end of offer period,” the bank had said.