UnionBank global notes fetch investment grade from Moody’s
This bank is deemed creditworthy for foreign investors.
Moody’s Investors Service has given a Baa2 rating for the first batch of five-year debt papers floated by Union Bank of the Philippines.
In a statement, the debt watcher said UnionBank’s $1-billion medium term note program is a notch above minimum investment grade status, providing comfort to potential investors to bet on these papers.
The notes carry a 3.369% annual interest and have been listed on the Singapore Stock Exchange. The bank raised $400 million during its first offering, with demand hitting as much as $3.2 billion.
Moody’s gave the rating given UnionBank’s above-industry-average profitability and strong loan growth, although heavily reliant on high-cost corporate deposits.