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May 27, 2024

UnionBank raises P11B via country’s first-ever digital peso bond issue

Union Bank of the Philippines headed by bankero Edwin Bautista raised P11 billion via the issuance of the country’s first-ever digital peso bonds.

The fund raising activity, which is part of the existing P39 billion bonds program, was heavily oversubscribed as the Aboitiz-led bank was originally looking at raising P1 billion.

The digital peso bond with a tenor of 1.5 years and a fixed rate of 3.25 percent per annum will be listed on the Philippine Dealing & Exchange Corp. (PDEx) tomorrow morning.

The offering is a result of UnionBank’s partnership with the Phil. Depository & Trust Corp. (PDTC) to be a pilot user of PDTC’s Proof of Concept (POC) Digital Registry & Digital Depository utilizing distributed ledger or blockchain technology for registry and depository operations.

The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Standard Chartered Bank (SCB) acted as the joint lead arrangers and bookrunners.

These institutions are also serving as selling agents for the offering together with UnionBank.