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CHINA BANKING Corp. (Bank of China) is looking to raise $ 2 billion in fresh funds through euro bonds to support its operations, it said on Thursday.
The lender said yesterday in a disclosure to the Philippine Stock Exchange that its board of directors approved on Wednesday the establishment of a $ 2 billion medium-term note program.
China Bank said the program will allow it to tap into demand for local issues abroad.
“The proceeds from this program will be used to support the bank’s general financing requirements,” he said.
“The program of medium-term promissory notes in euros gives the bank the agility to take advantage of theffMarkets offshore quickly when presented with the right market conditions. This expands our range of financing options, ”said the senior vice president and beMagnolia Luisa N. Palanca, head of the financial markets segment, said via Viber. No further details were available Thursday.
China Bank said in February that the central bank approved its planned issue of P15 billion in unsecured subordinated debt that qualifies as Tier 2 capital under Basel III requirements.
The lender established a 75,000 million peso bond program last year to raise funds for its operations. It raised P30 billion through its first issue of pesos beFixed rate bonds in July 2019.
China Bank posted net attributable income of P3 billion in the second quarter, higher than the P2.33 billion it posted in the same period a year ago. This was due to better net interest income, even as it increased its provisions for credit losses in anticipation of the impact of the coronavirus pandemic on the quality of its assets.
This brought the bank befirst half net profit to P5.220 million, up from P4.19 billion a year ago.
China Bank shares closed at P20.85 each on Thursday, up 25 cents or 1.21% from the previous day. – KKT Jose
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