UnionBank, led by president and CEO Ana Maria A. Delgado, plans to raise $800 million (P46 billion) via its Euro Medium Term Note (EMTN) Program and P30 billion from a peso bond issuance. The timeline and other details have yet to be finalized.
The combined fundraising plans eclipse its P40 billion stock rights offering in 2022, which partially funded the purchase of Citi’s Philippine assets.
What’s the fresh issuance for?
“Our fund raising is primarily for refinancing of maturing bonds and loans,” Manuel R. Lozano, chief financial officer of UnionBank, told InsiderPH.
“We also continue to support the growth of our consumer loan portfolio and further investment in technology,” he added.
Debts due in 2025 & 2026
UnionBank is preparing to raise funds ahead of P26.84 billion in US dollar notes and Philippine peso bonds due this year.
By next year, it anticipates another P8.63 billion in maturities, based on data from its recent annual report.
Finally, it plans to redeem P6.8 billion in bonds due in 2030, but callable in 2025, to lower debt costs.
Room for further fundraising
UnionBank remains bullish on consumer lending and continues to expand in this segment.
With the upcoming EMTN issuance, it would still have $400 million left to issue. It also doubled its bond program from P50 billion to P100 billion, with P30 billion sourced from the latest offering.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
