Fuelling growth, deepening ties

Standard Chartered Bank reinforces partnership with SMC Group as it facilitates BankCom's P18-B bond

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Bank of Commerce

In February this year, Bank of Commerce (BankCom) listed its largest bond nearly four times its original target at P18 billion. An affiliate of the San Miguel Corporation (SMC) since 2008, BankCom has since reported a strong first-half performance, driven by its core business growth, strategic tech investments and expanding digital offerings.

"The successful bond issuance marks a pivotal milestone for the bank. This milestone is not just a financial achievement, but more importantly, it is the catalyst that launches our trajectory of future growth in focal areas, which our clients deem to matter most to achieving their success," BankCom President and CEO (PCEO) Michelangelo R. Aguilar said in an interview with BusinessWorld.

Mr Aguilar noted that the bond issuance is an asset-liability exercise to match and manage long-term assets (i.e., consisting of term loans, mortgages, and auto loans) with long-term funds. While that may sound like the company's fiduciary duty from the get-go, he said nothing about the transaction can be called routine.

"Given its size, which was achieved within the shortest selling period in our bond history, this issuance validates the strong vote of confidence from investors in BankCom's financial strength, strategic direction, astute management, and future prospects," Mr Aguilar said.

To facilitate the bond listing, Standard Chartered acted as Joint Lead Arranger, Joint Bookrunner, and Selling Agent for BankCom's P18 billion dual-tranche 2-year and 5.25-year fixed-rate bonds.

"Standard Chartered assisted BankCom in being deal-ready to quickly seize conducive market conditions. BankCom's offering is also the first public bond issuance in 2025, and they were able to reap the benefits of it, drawing on the robust onshore liquidity and demand for high-yielding investments," Standard Chartered Bank Philippines CEO Mike Samson said in a separate interview.