China Bank shortens bond offer period due to oversubscription

China Banking Corp. ended its P15-billion fixed rate bond offering ahead of the originally scheduled October 14 closing, citing overwhelming demand for the issuance.

In a statement on Tuesday, the lender said it closed the offering on Monday, October 5, following oversubscription.

The two-year bonds were offered to the public starting September 28, 2020 at a fixed rate of 2.75%, with a minimum of P100,000 and increments of P50,000 thereafter.

"We are grateful for the strong investor support for our second peso bond issuance," China Bank president William Whang said.

"The overwhelming demand speaks of the investing public's trust and confidence not only in the bank but also in the capital markets in these challenging times," he added.

The bonds will be issued out of China Bank's P45-billion bond and commercial paper program, and will be listed on the Philippine Dealing and Exchange Corp. on October 22, 2020.

The bank said proceeds from the issuance will be used to support its strategic initiatives and expansion programs moving forward.

China Bank Capital Corp. served as the issue coordinator, structuring advisor, and bookrunner for the issuance.

Meanwhile, Hongkong and Shanghai Banking Corp. Ltd. (HSBC), Philippine Commercial Capital Inc., and Standard Chartered Bank served as joint lead arrangers and selling agents. — DVM, GMA News