MANILA - CitySavings, the thrift bank arm of UnionBank, has issued P5 billion of corporate notes to expand its loan portfolio, refinance its maturing debts, and for other corporate requirements.
UnionBank disclosed to the stock market on Tuesday that P1.5 billion of the notes will be due in three years, while the P3.5 billion balance will mature in five years.
Corporate notes are debt securities similar to bonds.
The notes issue was met by strong demand and was oversubscribed by financial institutions, UnionBank added.
"We believe that CitySavings is a key player in the Philippine banking system, as it provides financing to our public educators who in turn play a critical part in molding and strengthening our country's future prospects," Ed Francisco, president of BDO Capital & Investment Corp, said.
BDO Capital was the lead arranger and bookrunner of the deal, together with Development Bank of the Philippines, Philippine National Bank and Robinsons Bank as co-arrangers.
Since UnionBank's acquisition of the thrift bank in 2013, CitySavings has grown its branches to a total of 149 nationwide, expanding its offers to include pension loans and motorcycle loans, UnionBank said.
"For nearly six decades, CitySavings has built a trusted reputation. We will continue to grow and evolve to become the finest mass market bank in the Philippines as we introduce more innovative solutions for a seamless customer experience,” CitySavings President and CEO Lorenzo Ocampo said.