BANK of Commerce (BankCom), an affiliate of San Miguel Corp., on Monday commenced the public offering of at least P5 billion worth of bonds with fixed interest rates of up to 7.6563 percent to diversify its funding sources and support balance sheet management.
The company said the dual-tranche offering, which comes with an oversubscription option, comprised bonds due in 2028 and 2029 and was the fourth issuance under an updated P80-billion bond program.
The Series E bonds carry a tenor of 1.5 years and an annual interest rate of 6.9882 percent, while the Series F bonds mature in three years and offer a rate of 7.6563 percent. Interest payments will be made quarterly.
The public offer runs until 5 p.m. of Nov. 4, subject to the bank’s right to shorten or extend the period. The bonds are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on Nov. 11.
The minimum investment amount is P100,000, with increments of P50,000 thereafter.
BankCom said proceeds would be used for balance sheet management, diversification of funding sources and general corporate purposes.
ING Bank N.V., Manila Branch; Philippine Commercial Capital Inc.; Security Bank Capital Investment Corp.; and Standard Chartered Bank were appointed joint lead arrangers and joint bookrunners. BankCom will also serve as a selling agent alongside the four firms.
The bonds are exempt from registration with the Securities and Exchange Commission under Section 9.1(e) of the Securities Regulation Code and are not deposit instruments or insured by the Philippine Deposit Insurance Corp.
The offering comes as the bank reported higher earnings in the first half of 2026. BankCom posted a net income of P2.11 billion as of end-June, up 13 percent from P1.86 billion a year earlier.
Return on equity was 11.56 percent and return on assets stood at 1.47 percent, which BankCom attributed to strong core banking performance and client-related foreign exchange gains.
On Monday, the bank’s shares dropped P0.08, or 0.79 percent, to close at P10.06 each.
