The strong response allowed the bank to secure substantially more funding than initially targeted, giving it additional resources to expand lending and manage its financial obligations.
“We are grateful for the continued support from our investors,” BankCom president Michelangelo Aguilar said in a statement on Wednesday.
“The success of this offering, with an oversubscription of over 3.4 times, particularly amid a challenging market backdrop, reflects continued confidence in BankCom’s fundamentals and strategy,” he added.
Higher yields attract investors
BankCom raised P9.3 billion from bonds paying 6.9882 percent annually over 18 months and another P8.1 billion from three-year securities offering 7.6563 percent, with interest paid every quarter.
The longer-term bonds offered investors higher returns in exchange for locking in their money for an additional 18 months, while allowing BankCom to secure funding at fixed rates.
More room to grow
The Nov. 11 issuance forms part of BankCom's P80-billion bond program, which allows the lender to raise funds in stages instead of relying entirely on deposits and other borrowing sources.
The proceeds will support general banking operations, diversify funding sources and strengthen the bank's ability to manage its balance sheet, although BankCom did not earmark a specific amount for new loans.
The bonds were listed on the Philippine Dealing & Exchange Corp., completing BankCom's fourth issuance under its expanded bond program.
Earnings provide support
The fundraising follows a 13-percent increase in BankCom's first-half net income to P2.11 billion, supported by its core lending business and gains from foreign exchange transactions.
BankCom also reported an 11.56-percent return on equity, a measure of how profitably it uses shareholders' capital, as the bank builds on its expansion since listing on the Philippine Stock Exchange in 2022.
—Edited by Miguel R. Camus
