UnionBank set to exercise call option on P6.8-billion Tier 2 bonds

THE BANGKO Sentral ng Pilipinas (BSP) has cleared Union Bank of the Philippines, Inc.’s (UnionBank) plan to buy back P6.8 billion worth of bonds due 2030.

“Please be informed that the Bangko Sentral ng Pilipinas approved Union Bank of the Philippines’ request to exercise its voluntary redemption option on its P6.8-billion unsecured subordinated debt eligible as Tier 2 capital scheduled on May 24, 2025,” it said.

“All noteholders on record shall be notified of the said voluntary redemption option prior to the voluntary redemption date in accordance with the Manual of Regulations for Banks and the terms and conditions of the notes,” the bank added.

UnionBank in February 2020 raised P6.8 billion from the Tier 2 notes, higher than the initial P5-billion target. The issue was listed on the Philippine Dealing and Exchange Corp. that same month.

The Tier 2 notes have an interest rate of 5.25% per annum, payable in arrears quarterly, and were set to mature on May 24, 2030.

They have a tenor of 10 years and three months and are callable in 5.25 years from the issue date or starting May 24.

UnionBank’s attributable net income rose by 31.5% year on year to P11.93 billion in 2024 from P9.07 billion in 2023 on the back of its strong consumer business, improved margins, and higher revenues.

Its shares went up by 25 centavos or 0.76% to close at P33.25 each on Wednesday. — AMCS