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July 19, 2024

BankCom bond offering draws 1.3x oversubscription

Bank of Commerce, an affiliate of San Miguel Corporation, has successfully raised a total of P6.57 billion through a bond offering that received strong demand from both institutional and retail investors.

In a regulatory filing, BOC said the offering resulted in an oversubscription of 1.3 times.

The Series B Bonds, part of BankCom’s P20 billion bonds program, come with a tenor of 1.5 years and a fixed interest rate of 6.5635% per annum. Scheduled for issuance and listing on the Philippine Dealing & Exchange Corp. (PDEx) on May 16, 2024, the proceeds from this offering will be utilized to refinance maturing debt obligations.

In a significant milestone, BankCom celebrated its 60th anniversary in 2023 by achieving a record net income of ₽2.8 billion, marking a 56 percent increase from the previous year’s earnings of ₽1.8 billion. This performance positioned BankCom as the Philippine bank with the highest growth rate for the year. E

Ending the year with a return on equity of 9.52 percent, the bank demonstrated a notable improvement from the prior year’s 7.01%, exceeding its IPO prospectus ROE of 4.22 percent by more than double.

BankCom’s exceptional profitability was driven by the expansion of its core lending business, as evidenced by a 24 percent year-on-year increase in net interest Income, amounting to P1.61 billion.

Growth was witnessed across all lending segments. Additionally, the bank experienced growth in service charges, fees, and commissions, fueled by revenues generated from its investment banking, credit card, and trust businesses.