UnionBank raises P16B from debt market for expansion

Union Bank of the Philippines has raised P16 billion from the domestic debt market, exceeding its initial target to support its expansion plans.

The bank issued dual-tranche bonds: a 1.5-year Series H at an annual rate of 5.88 percent and a three-year Series I at 6.02 percent, raising P9.25 billion and P6.75 billion respectively, both exceeding their base targets.

Proceeds from this issuance will be used for extending term liabilities, expanding the funding base, supporting business expansion plans, and other general corporate purposes.

The bonds will be listed on the Philippine Dealing and Exchange Corp. on Thursday, June 26.

Unionbank's bond program is part of an upsized P100-billion issuance approved in 2019.

Strong interest from institutional and retail investors led to both tranches exceeding their base targets, reflecting UnionBank’s growing appeal in the domestic market.