CHINA Banking Corp. earned P20 billion from its first issuance of bonds this year, proceeds of which are allocated for strategic initiatives and expansion programs.
In a disclosure on Thursday, China Bank reported that the amount it raised from the transaction was four times more than the original offer of P5 billion, thanks to robust demand from individual and institutional investors.
“We would like to extend our gratitude to our investors, customers, and everyone involved in this transaction for their continued trust in us,” said China Bank President William C. Whang. “The strong demand we garnered underscores the investing public’s sustained confidence in China Bank amid these challenging times.”
The three-year fixed-rate peso bonds are due in 2024. Each bond carries an interest rate of 2.50 percent per annum and is payable monthly.
The bond issuance is the second transaction drawn out of the bank’s P45-billion bond and commercial paper program established in September 2020. The bank previously raised P15 billion from the issuance of two-year bonds in October last year.
China Bank Capital Corp. was tapped as the issue coordinator, structuring advisor, joint lead arranger and joint bookrunner. The Hongkong and Shanghai Banking Corp. Ltd. and Philippine Commercial Capital Inc., meanwhile, were the joint lead arrangers, joint bookrunners and selling agents of the issuance.
Recently, China Bank announced that it was extending the waiver of fees for transactions via InstaPay and PesoNet until March 31.
In December, the bank announced it was also able to keep its Baa2 rating with stable outlook from debt watcher Moody’s Investor Service amid an ongoing economic slump. The credit rating agency attributed this to stable capital position and profitability.
China Bank saw its net income increase by 23 percent to P8.2 billion in the first nine months of 2020 on the back of robust core businesses. Net earnings for the third quarter last year alone, meanwhile, improved by 21 percent to P3 billion year-on-year.
Provisions for potential credit losses were up by 12 times to P6.3 billion as of end-September 2020. In the same period, its nonperforming loans ratio and NPL coverage stood at 2.5 percent and 104 percent, respectively.
The bank’s capitalization rose by 9 percent to P101 billion as of end-September last year. Capital adequacy ratio stood at 13.99 percent for the period, which is above minimum regulatory requirement.
Shares in China Bank climbed by 0.21 percent, or 5 centavos, to close at P24.10 each amid the 1.68-percent drop for the benchmark index on Thursday.
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