CHINA BANKING Corp. (Chinabank) is looking to return to the debt market to raise P100 billion in fresh funds via bonds or commercial papers over the next three years.
Chinabank’s board of directors approved the three-year P100-billion fundraising program at its regular meeting on Jan. 8 (Wednesday), it said in a disclosure to the stock exchange on Thursday.
The total amount will be raised in several tranches via issuances of retail bonds, commercial papers, or a combination of both.
“The proceeds shall be used to support the bank’s strategic initiatives and expansion programs,” Chinabank said.
The program will mark Chinabank’s return to the debt market after nearly four years.
The listed bank last tapped the domestic debt market in February 2021, raising P20 billion from the issuance of three-year peso bonds, four times the minimum target amount of P5 billion.
The notes, which matured in 2024, were priced at 2.5% per annum, payable monthly.
Chinabank Capital Corp. was the issue coordinator, structuring advisor, joint lead arranger and joint bookrunner for the offering.
The lender also appointed Philippine Commercial Capital, Inc. and HSBC as the joint lead arrangers, joint bookrunners, and selling agents for the issue.
The bonds were issued under its P45-billion bond and commercial paper program that was approved in September 2020.
Chinabank’s net income rose by 29.43% year on year to P6.93 billion in the third quarter of 2024 on the back of continued core business growth.
This brought its nine-month net profit to a record P18.4 billion, up by 13% year on year.
Chinabank’s shares went down by 30 centavos or 0.43% to close at P69 apiece on Thursday. — A.M.C. Sy