Standard Chartered Bank reinforces partnership with SMC Group as it facilitates BankCom’s P18-B bond
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.
Mike Samson, Standard Chartered Bank Philippines CEO
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 take advantage 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 raise a record P18 billion, 3.6 times oversubscribed, while meeting its sizing and pricing goals and securing its tightest spreads to date.
Building 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 completed despite the onset of the pandemic, and which once again played a key role in ensuring the smooth 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.
Building growth backed by strengths
The issuance shows investor confidence in BankCom’s financial strength and strategy, while also positioning the bank to use the proceeds on growth initiatives.
“The proceeds from the largest bond issuance with the shortest selling period ever in BankCom history provides us a solid foundation for accelerated growth as it allows us to significantly bolster our ability to extend credit and expand our market share within the SMC ecosystem,” Mr Aguilar said.
Michelangelo R. Aguilar, Bank of Commerce President and CEO
According to BankCom’s PCEO, the capital gained from the listing will scale the bank’s lending capacity through more competitive and accessible financing solutions offered to a wider range of clients. The listing is also expected to deepen the company’s relationship with the San Miguel Group, of which it has accessed 40% and continues to penetrate for deposit, cash 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 one of the largest and most diversified conglomerates in the Philippines by revenues and total assets,” Mr Aguilar expounded.
As the main cash management bank of SMC, BankCom holds the operating account of SMC, making it a natural fit to do the same for the 4,000 small and medium enterprises, mid-sized suppliers, and distributors within the SMC ecosystem. This relationship allows BankCom to extend 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 innovative 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 value chain; supporting economic development and social impact through job creation; diversification and reduced risk by not only relying on a single client; and enhanced reputation and brand loyalty through its commitment to the wider community which leads to attracting new clients and talent,” Mr Aguilar said.
This landmark transaction strengthened BankCom’s ties within the San Miguel Group while also reinforcing Standard Chartered’s long-standing partnership with SMC.
“Standard Chartered has been a strong 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 in 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 first half of the year. Compared to P1.42 billion in the first 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 same period last year, while non-interest income at P912.52 million, P214.15 million higher than P698.37 million in the prior year.
“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. Furthermore, 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 cash 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 is also 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 part of BankCom’s IT investment programme and branch banking strategy, designed to provide customers with a secure and efficient banking experience, enabling them to manage their finances anytime and anywhere,” Mr Aguilar concluded.
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