Philippines: AUB bank targets $107m notes sale

Visual from the company website. November 2015

Philippine-based Asia United Bank Corp (AUB) is targeting to raise up to $107 million (P5 billion) in its latest public offering of long-term debt notes meant to strengthen its capital base.

Classified as Tier 2 unsecured subordinated notes, AUB started the offer on Wednesday to run until
November 16, 2015. The issue date is slated on November 25, 2015. The bank, however, noted it reserves the right to shorten the offer period as needed.

The net proceeds is expected to strengthen AUB’s capital adequacy based on the requirements of the
Bangko Sentral ng Pilipinas (central bank of the Philippines).

Also Read: AUB closes 100% stake buy in SG remittance firm Pinoy Express

“By continuously embarking on ways to redefine our value proposition to our clients, we are staying a step ahead in innovation and technology, as well as reaching out to more customers who are starting to reap the benefits of our investment in expanding our network and in product offerings. This is why having a strong capital base is important in supporting our ambition to become one of the top ten leading banks in the Philippines,” said AUB president Abraham Co.

AUB further disclosed it will issue the Tier 2 notes in one or more tranches within one year. The issue will have a maturity of 10 years from the issue date of each tranche. At its option, the bank may redeem any tranche of the Tier 2 notes on any interest payment date falling after the fifth anniversary of the tranche’s issue date.

The issue price is at 100 per cent of the face value of the notes. The indicative yield ranges from 5.5 per cent to 5.875 per cent with the final rate to be announced at the end of the offer period.

Also read: AUB invests $6.7b for new house subsidiary in PH

The minimum investment amount is P500,000 with additional increments of P50,000.

BDO Capital and Investment Corporation (BDO Capital) and Deutsche Bank AG Manila Branch (DB) will act as joint lead arrangers and joint bookrunners for the transaction. The other selling agent is Multinational Investment Bancorporation, with AUB also acting as a limited selling agent.

AUB is among the top 20 banks in the Philippines with an asset size of P131.4 billion as of June 30, 2015. It has a network of more than 200 branches and 239 ATMs nationwide, in addition to being one of the most active innovators in the online banking space as early as 2007.

AUB’s last trading price increased 0.20 per cent or P0.100 to close at P49.00.

Also read:

RCBC bond issue fetches $320m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.