In February this 12 months, Bank of Commerce (BankCom) listed its largest bond nearly 4 times its original goal at P18 billion. An affiliate of the San Miguel Corporation (SMC) since 2008, BankCom has since reported a powerful 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 just not only a financial achievement, but more importantly, it’s 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 will sound like the corporate’s fiduciary duty from the get-go, he said nothing in regards to the transaction may be called routine.
“Given its size, which was achieved inside 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 can also be the primary public bond issuance in 2025, and so they were capable of reap the advantages 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.
Mr Samson added that the transaction was structured as a dual-tranche offering, with BankCom issuing a 5.25-year tranche, to align with investor tenor preferences and reap the benefits of the regulatory landscape then that allowed for tax incentives to eligible Filipino individuals who hold long-term bank bonds. He said strong demand allowed BankCom to boost a record P18 billion, 3.6 times oversubscribed, while meeting its sizing and pricing goals and securing its tightest spreads to this point.
Constructing on a trusted partnership, Mr Aguilar emphasised BankCom’s familiarity with Standard Chartered, which previously served as Sole Bookrunner and Joint Lead Arranger for its maiden P5.03 billion Long-Term Negotiable Certificates of Time Deposit (LTNCTDs) in March 2020, a deal accomplished despite the onset of the pandemic, and which once more played a key role in ensuring the sleek and successful execution of this latest bond offering.
“Standard Chartered’s global expertise, strong local presence, and deep understanding of fixed-income markets made them ideal partners for a successful transaction. The collaboration ensured a smooth and efficient execution of the bond offering,” he added.
Constructing growth backed by strengths
The issuance shows investor confidence in BankCom’s financial strength and strategy, while also positioning the bank to make use of the proceeds on growth initiatives.
“The proceeds from the most important bond issuance with the shortest selling period ever in BankCom history provides us a solid foundation for accelerated growth because it allows us to significantly bolster our ability to increase credit and expand our market share inside the SMC ecosystem,” Mr Aguilar said.
In response to BankCom’s PCEO, the capital gained from the listing will scale the bank’s lending capability through more competitive and accessible financing solutions offered to a wider range of clients. The listing can also be expected to deepen the corporate’s relationship with the San Miguel Group, of which it has accessed 40% and continues to penetrate for deposit, money management, or financing solutions.
“Our growth strategy significantly emphasises nurturing the San Miguel Group, comprised of its business units, subsidiaries, and affiliates. We recognise that SMC is considered one of the most important and most diversified conglomerates within the Philippines by revenues and total assets,” Mr Aguilar expounded.
Because the primary money management bank of SMC, BankCom holds the operating account of SMC, making it a natural fit to do the identical for the 4,000 small and medium enterprises, mid-sized suppliers, and distributors inside the SMC ecosystem. This relationship allows BankCom to increase tailored loan and financing solutions, provide quicker access to capital, deliver financial literacy programmes, foster stronger client partnerships through dedicated relationship managers, and enhance services with modern digital and technological tools.
“BankCom believes that supporting the broader population of local partners, suppliers and entrepreneurs is crucial for long-term success and sustainable growth through strengthening the worth chain; supporting economic development and social impact through job creation; diversification and reduced risk by not only counting on a single client; and enhanced popularity and brand loyalty through its commitment to the broader community which results in attracting latest clients and talent,” Mr Aguilar said.
This landmark transaction strengthened BankCom’s ties inside the San Miguel Group while also reinforcing Standard Chartered’s long-standing partnership with SMC.
“Standard Chartered has been a powerful and long-time partner of San Miguel Corp. in its financing initiatives and as advisor for its various projects. This issuance further strengthened our relationship with the San Miguel Group, effectively supporting BankCom’s aspiration to be the Best Conglomerate Bank within the Philippines,” Mr Samson commented.
Improved performance
The strong capital raised from the listing has already translated into improved financial performance, with BankCom reporting robust earnings growth in the primary half of the 12 months. In comparison with P1.42 billion in the primary half of 2024, the bank posted an unaudited net income of P1.86 billion in 2025, a 31% surge. Similarly, net interest income reached P5.15 billion, 14% higher than P4.53 billion in the identical period last 12 months, while non-interest income at P912.52 million, P214.15 million higher than P698.37 million within the prior 12 months.
“The robust performance was underpinned by sustained growth across core revenue streams, driven by net interest income, gains from trading securities, and foreign exchange transactions. Moreover, the bank’s strategy of improving its revenue streams and prudent spending resulted in a lower cost-to-income ratio of 59%,” Mr Aguilar said.
BankCom has also undergone digital transformation through its partnership with Infosys Finacle to modernise and replace legacy core banking systems with a customer-focused infrastructure. Alongside this, the bank has introduced money kiosks, upgraded its ATM network, and launched the Personal Online Banking QRPH, bringing its total network to 272 machines as of June. Complementing this digital push, BankCom can also be innovating its physical presence with “Branch Lite Units” (BLUs), opening its first in Caticlan Airport and securing approvals for six locations with more expansions planned.
“These initiatives are a part of BankCom’s IT investment programme and branch banking strategy, designed to offer customers with a secure and efficient banking experience, enabling them to administer their funds anytime and anywhere,” Mr Aguilar concluded.
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