Union Bank of the Philippines (UnionBank) was able to raise P11 billion in what is considered as the first-ever digital peso bonds offering in the country.
“This pioneering issuance serves as a building block in UnionBank’s journey to embrace digitization and positive disruption in the industry,” said Jose Emmanuel Hilado, treasurer and head of Global Markets of UnionBank in a media statement. “I am confident that this will be recognized globally as a game-changing digital initiative in the field of finance.”
The confidence shown by retail and institutional investors resulted in an order book 11 times its initial minimum offer size of P1 billion.
The digital bonds were issued through the digital registry and digital depository of the Philippine Depository and Trust Corp. (PDTC) and underwent the traditional trading to clearing infrastructure of the Philippine Dealing & Exchange Corp. (PDEx) Fixed Income Market. The digital bonds utilize infrastructure powered by #STACS blockchain.
The bonds which have a tenor of 1.5 years and a fixed rate of 3.25% per annum were issued out of UnionBank’s existing P39 billion Bonds Program. The bonds are listed and available for trading on PDEx.
The joint lead arrangers and bookrunners on the transaction that will also act as selling agents are the Hongkong and Shanghai Banking Corp. Limited (HSBC) and Standard Chartered Bank (SCB).