Union Bank of the Philippines (UnionBank) successfully issued the country’s first-ever offering of digital peso bonds, raising an aggregate issue size of ₱11 billion. Despite the volatile rate backdrop, the robust participation from retail and institutional investors resulted to an order book eleven times its initial minimum offer size of ₱1 billion.
A first for the Philippines, this digital public bond offering and issuance marks a milestone and the success of this Proof of Concept (POC) paves the way for future utilization of Distributed Ledger / Blockchain Technology toward more automated and operationally efficient local capital markets. The digital bonds were issued through the digital registry and digital depository of the Phil. Depository & Trust Corp. (PDTC) utilizing infrastructure powered by #STACS blockchain and which new digital infrastructure was kept interoperable with the traditional trading to clearing infrastructure of the Phil. Dealing & Exchange Corp. (PDEx) Fixed Income Market.
“This pioneering issuance serves as a building block in UnionBank’s journey to embrace digitization and positive disruption in the industry. I am confident that this will be recognized globally as a game changing digital initiative in the field of finance.” said Jose Emmanuel Hilado, Treasurer and Head of Global Markets.
The bonds which have a tenor of 1.5 years and a fixed rate of 3.25% per annum were issued out of UnionBank’s existing ₱39 billion Bonds Program. The bonds are listed and available for trading on PDEx.
The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Standard Chartered Bank (SCB) are the Joint Lead Arrangers and Bookrunners on the transaction. They are also the Selling Agents for the offering together with UnionBank.