EastWest Bank Offers Php1.5 Billion in LT2 Notes
MAKATI, June 25, 2010. EastWest Bank today announced that it has recently concluded its successful offering of Php1.5 Billion Lower Tier II Notes (LT2).
At the commencement of the offer period on June 21, the Bank received an overwhelming response from various investors for its LT2 offering. According to EastWest Bank’s Treasury group, the strong demand persisted until the last day of the offering. The offer period for the first tranche ended on June 25. The Notes will be issued on July 2, 2010. This will be EastWest’s second LT2 issuance after its Php1.25 billion issue in 2008. The Php1.5 billion LT2 will be utilized to augment the Bank’s asset expansion efforts, which include plans to increase lending and open more branches.
The issue will mature in 10 years and six months, with a customary optional redemption after 5 years and 6 months. The notes will bear a fixed interest rate of 7.5% per annum, paid semi-annually for the first 5 years and 6 months.
The new LT2 issue will bring the total LT2 capital of EastWest to Php2.75 billion. In the last three years, EastWest Bank’s parent, Filinvest Development Corporation, had also pumped in a total of Php4.5 billion in Tier 1 capital. These capital infusions had fueled the Bank’s annual asset growth of 35% from 2006 to 2009. EastWest has total assets of more than Php78.5 billion as of end May 2010. It registered an ROE of 23.8% in the first quarter of the year, one of the highest in the industry and second to ING Bank’s ROE of 28.1%.
“We are looking forward to another good year in 2010, a lot even better than 2009. Things are looking good. The world economy is recovering, there is a newfound optimism in the country, and the macroeconomic numbers should continue to improve. We are confident that the Bank is ready to take advantage of opportunities that naturally come from these positive developments,” Tony Moncupa, EastWest president and Chief Executive Officer noted.
The Bank has appointed Unicapital Incorporated (Unicapital) as the LT2’s Lead Arranger, and Multinational Investment Bancorporation as Market Maker. Both companies have also been designated as selling agents for the Notes.
ABOUT EASTWEST BANK
East West Banking Corporation (EastWest Bank) opened its doors to the public on August 1, 1994. The Bank is a wholly owned subsidiary of Filinvest Development Corporation (FDC), the publicly listed holding company of the Filinvest Group founded by Andrew L. Gotianun, Sr. in 1955. The Filinvest Group is one of the country’s premier conglomerates, with business interests in real estate development, financial services and the sugar business.
