Bank of Commerce lists P6.57-B bonds

BANK of Commerce (BankCom) on Thursday listed its one-and-a-half-year Series B bonds on the Philippine Dealing & Exchange Corp. (PDEx) after raising P6.57 billion from its latest offering.

“To be back after BankCom’s successful maiden listing in 2022 signals strong support from the fixed-income market, marking the company’s resilient profitability and stable balance sheet growth,” BankCom President and Chief Executive Officer Michelangelo R. Aguilar said in the virtual listing ceremony on Thursday.

“As such, the overwhelming response to BankCom’s competitively priced one-and-a-half-year Series B bonds underscores the trust and confidence of institutional and retail investors in BankCom’s performance, creditworthiness, and our growth potential,” Mr. Aguilar added.

PDEx President and Chief Executive Officer Antonino A. Nakpil said the issuance was a good sign for the economy as despite lingering challenges, banks have been active in fundraising this year.

“This again is a good indicator as banks are the key mobilizers of capital financing. And if they are building resources, these are likely to be utilized for onward deployment to active corporate borrowers,” Mr. Nakpil said at the same event.

“This issuance is the first in a revived distinct pipeline that may bring in at least about P50 billion of new securities to continue this positive trend from the private sector for the next two months,” he added.

BankCom’s issuance brings the total volume of new listings for this year to P88.62 billion, PDEx said. The value of tradeable corporate debt instruments now stands at P1.14 trillion, issued by 41 companies and 162 securities.

BankCom’s offering of new bonds due 2025 was 1.3 times oversubscribed following strong demand from institutional and retail investors. The securities were priced at a fixed interest rate of 6.5635% per annum.

The issuance made up the second tranche of BankCom’s P20-billion bond program, with the proceeds to be used to refinance its maturing debt obligations.

The bank’s net income grew by 7.89% year on year to P769.18 million in the first quarter, driven by continued growth in its revenues.

BankCom’s shares rose by 69 centavos or 10.15% to end at P7.49 apiece on Thursday. — AMCS