BankCom opens $78.6M bond offer at rates up to 7.66%
What's the deal? Bank of Commerce (BankCom)Dealroom has a profile for this one. Try Dealroom →, an affiliate of San Miguel Corp., has opened a public offering of at least P5 billion (≈$78.6 million) in fixed-rate peso bonds, with annual interest up to 7.6563%. The offer runs from October 26 to November 4, 2026, with proceeds earmarked for balance-sheet management, funding diversification, and general corporate purposes.
The details: The two-tranche deal sits under BankCom's P80-billion peso bond program. Series E bonds due 2028 pay 6.9882% over 1.5 years; three-year Series F bonds due 2029 pay 7.6563%, both with quarterly interest. The minimum investment is P100,000, and the bank may upsize the issue through an oversubscription option.
Who's involved? ING Bank N.V. Manila Branch, Philippine Commercial Capital, Security Bank Capital Investment Corp., and Standard Chartered Bank are joint lead arrangers and bookrunners. The bonds are expected to list on the Philippine Dealing & Exchange Corp. on November 11.
By the numbers: BankCom posted net income of P2.11 billion for the six months ended June 30, 2026, up 13% year on year. It reported record post-IPO profitability, with return on equity at 11.56% and return on assets at 1.47%, supported by core banking and client foreign exchange gains.
Why now? The offer arrives as Philippine borrowing costs climb. The Bangko Sentral ng Pilipinas (BSP) raised its policy rate by 50 basis points in October 2026, and government bond yields rose amid inflation and peso concerns. BankCom's coupons track recent yields on comparable two- and three-year government securities — a repricing of bank funding rather than cheap money.
The signal: By the standards of its database peers, this is a modest raise — in roughly the 11th percentile by amount. But it is a repeat move for BankCom, whose 2025 P5-billion base offer was upsized to P18 billion on strong demand. The latest deal is a funding and balance-sheet exercise, not a new equity raise — a sign of how banks are locking in longer-term peso funding before rates climb further.
Read more: context.ph
Image credit: Jun Acullador
