Sy family-led China Bank is setting up a P75-billion bond program for the next three years, joining the bandwagon of banks tapping the bond market to fund robust lending activities.
Such a bond program gives Chinabank more options to raise funds and reduce reliance on deposits.
Chinabank’s fundraising exercise of up to P75 billion will be done in several tranches for the next three years.
These may be in the form of retail bonds and/or commercial paper.
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Retail bonds are long-term debt paper while commercial paper are short-term unsecured promissory notes or IOUs.
“The proceeds shall be used to support the bank’s strategic initiatives and expansion programs. This in line with the bank’s intention to be an active participant in the ongoing economic expansion of the country and the government’s infrastructure initiatives,” the bank said in a disclosure to the Philippine Stock Exchange on Thursday.
