EastWest Bank offers up to Php5-B Basel III Compliant Tier 2 notes
June 16, 2014 – EastWest Bank, the financial services arm of the Gotianun-led Filinvest Group, today starts the public offering of its unsecured subordinated tier 2 notes of up to Php 5 billion, which may be issued in one or more tranches within a period of one year from the date of BSP approval. The offer period will run until June 27, with the initial issue date on July 4..
The notes will have a term of 10 years and 6 months, with an issuer’s early redemption option after 5 years and 5 months. Investors may purchase the Tier 2 notes in minimum denominations of P500,000, in increments of P100,000. Interest will be paid quarterly in arrears.
Deutsche Bank, Hongkong and Shanghai Banking Corp., Standard Chartered and UniCapital are the joint lead arrangers of the Tier 2 offering and will also act as selling agents. EastWest Bank will be a limited selling agent, and 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.” The Basel III requirements took effect on January 1 this year.
A subsidiary of publicly listed Filinvest Development Corporation (FDC), EastWest has successfully capitalized on parent company’s other business interests in real estate development, banking, hospitality and tourism, power-generation and sugar to grow its banking portfolio.
Since its incorporation as a commercial bank in July 1994, EastWest Bank has been upgraded as a universal bank in 2012, and has since then emerged as one of the country's fastest growing banks.
EastWest is the tenth largest private domestic bank in terms of assets. It is also the fifth largest financial institution in terms of credit card receivables and one of the biggest in auto financing.
At the end of the first quarter of the year, EastWest’s total assets stood at Php153.8 billion with gross total loan portfolio of Php102.0 billion. Its capital adequacy ratio (CAR) and tier 1 ratio is 12.2 percent and 11.3 percent, respectively.