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Philippines : P5-B worth of Tier2 notes sold by East West Bank

June 16, 2014

EastWest Banking Corp declared that it has began the public offering of P5-billion worth of unsecured subordinated Tier 2 notes.

The banking arm of the Filinvest Group in a disclosure to the Philippine Stock Exchange said the Basel III-compliant Tier 2 note issuance--with a term of 10 years and six months--may be done in one or more tranches within one year from the date of the Bangko Sentral ng Pilipinas' (BSP) approval.

Offer period will run until June 27, with initial date issue date on July 4 and can be redeemed earlier after five years and five months.

Investors can acquire the debt papers for a minimum of P500,000, in increments of P100,000. The notes will be paid in quarterly arrears .

EastWest has tapped Deutsche Bank, Hongkong and Shanghai Banking Corp., Standard Chartered and UniCapital to assist as joint lead arrangers and as selling agents. The Gotianun-led lender, however, will only be a limited selling agent with Multinational Investment Bancorporation as the issue s market maker and selling agent.

Manuel Goseco, EastWest Bank senior vice president and treasurer said, The bank is issuing the Tier 2 notes to raise additional Basel III qualifying capital to support its growth plans .

Previously, EastWest Bank president Antonio Moncupa said that they plan to enter the bancassurance business, which complements its strength in consumer lending. It is the fifth largest financial institution in terms of credit card receivables and one of the biggest in auto financing.

EastWest, which is the tenth largest bank in the country, also expressed interest in bidding for the government's controlling stake in United Coconut Planters' Bank (UCPB).

At the end of the first quarter of the year, EastWest s total assets stood at P153.8 billion with gross total loan portfolio of P102 billion. Its capital adequacy ratio (CAR) and tier 1 ratio is 12.2 percent and 11.3 percent, correspondingly.

In the previous 2 years, the bank opened 178 branches, making EastWest on track to meet the 400-branch goal by the end of this year. As of April 24, EastWest previously had 375 branches.

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Source: TendersInfo (India)

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