Pasig—(PHStocks)—To increase and strengthen its capital base, publicly listed Asia United Bank (PSE: AUB) will offer to the general public up to PhP5 billion in Tier 2 unsecured subordinated notes from November 4-16, 2015. Issue date will be on November 25, 2015. The net proceeds of the Tier 2 notes will also strengthen AUB’s capital adequacy based on the requirements of the Bangko Sentral ng Pilipinas.
The bank, which is celebrating its 18th year this month with the theme “Redefined at 18,” is among the top 20 banks in the Philippines with an asset size of PhP131.4 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.
“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 T. Co.
AUB 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% of the face value of the notes. The indicative yield ranges from 5.5% to 5.875% with the final rate to be announced at the end of the offer period. The minimum investment amount is PhP500,000, with additional increments of PhP50,000.
While the offer period is scheduled to run from November 4 to 16, the bank reserves the right to shorten the offer period as needed. The transaction will have BDO Capital and Investment Corporation (BDO Capital) and Deutsche Bank AG Manila Branch (DB) as joint lead arrangers and joint bookrunners. In addition to BDO Capital and DB, the other selling agent is Multinational Investment Bancorporation, with AUB also acting as a limited selling agent.
Interested investors may contact any AUB branch or any of the arrangers/selling agents for more details and required documentation.