Banco de Oro plans issuing $69mn Tier 2 notes

The proceeds of notes having 10 years and 3 months maturity will be used for lender’s expansion.

Banco de Oro Unibank, the Philippines' largest bank by assets, said on Tuesday it was looking to offer unsecured subordinated Tier 2 notes to raise 3 billion pesos ($69 million) to fund its planned expansion.

Deutsche Bank AG-Manila Branch, HSBC and Standard Chartered Bank have been mandated as lead arrangers of Banco de Oro's second Tier 2 offer this year.

The three foreign banks will also act as selling agents along with Banco de Oro's BDO Private Bank unit and Multinational Investment Bancorporation.

The notes will have a maturity of 10 years and 3 months and will have a call option exercisable after five years, Banco de Oro said in a statement.

It said the offer period was to begin on Tuesday and would end Sept. 30, adding it may increase the offer and adjust the timing and terms if needed.

The indicative coupon rate would be based on the prevailing 10-year domestic benchmark. The 10-year T-bond was quoted at 5.9788 percent on Monday, based on the PDST-R2 value on the secondary debt market.

View the full story in Reuters.