China Bank Ends Bond Offer Period Early Due to Strong Demand

China Banking Corporation (China Bank, PSE stock symbol: CHIB) closed on October 5, 2020 its fixed rate bond offering, ahead of the original October 14 schedule, due to what it describes as overwhelming demand.

The two-year bonds which carry a fixed rate of 2.75% per annum were offered to the public starting September 28, 2020 in denominations of P100,000 and increments of P50,000 thereafter. Within a few days, the orders already exceeded the issue size of P15 billion.

“We are grateful for the strong investor support for our second peso bond issuance,” said China Bank President William C. Whang. “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.”

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

Proceeds from the offering will be used to support the Bank’s strategic initiatives and expansion programs.

China Bank Capital Corporation was the issue coordinator, structuring advisor, and bookrunner for this issuance.

The joint lead arrangers and selling agents were Hongkong and Shanghai Banking Corporation Limited, Philippine Commercial Capital, Inc., and Standard Chartered Bank China Bank. – BusinessNewsAsia.com

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