The Philippine Bank of Communications (PBCom) raised P7.7 billion through its oversubscribed maiden bond offering last month, signaling a more optimistic market as interest rates begin to fall.

The bank led by billionaire Lucio Co said on Tuesday that the bonds, which mature in a year and a half and promise a return of 6.0796 percent per year, were 3.85 times oversubscribed from the initial amount of 2 billion pesos.

“This is a true sign of the market’s confidence in our efforts over the past several years, which have resulted in a strong track record of asset, revenue and earnings growth,” said Patricia May Siy, president and CEO of PBCom, in a press release.

READ: PBCOM seeks to increase P2B with its first bond sale

According to the bank, the proceeds will be used for general corporate purposes, including refinancing debts and supporting loan growth.

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ING Bank NV Manila Branch was the sole arranger and bookrunner. She also acted as a sales agent, alongside PBCom.

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The bonds, part of PBCom’s P15-billion bond program, were listed on the Philippine Dealing and Exchange Corp. on Tuesday. (PDEx).

PBCom’s first offering of peso-denominated bonds came after the Bangko Sentral ng Pilipinas cut its policy rate by a total of 50 basis points to 6 percent.

Rate cuts generally make fixed-income securities, such as bonds, more attractive because of their higher yield.

The PDEx has seen at least P266.4 billion in domestic bonds this year, accounting for almost 70 percent of its P400 billion target for the entire year.

At the end of June, PBCom’s total assets reached P148.7 billion, up 12.2 percent.

Its profits in the January-June period rose 2.81 percent to P1.03 billion on growth in its loan portfolio.

Net interest income jumped 13.85 percent to P2.62 billion, supported by an increase in service charges, fees and commissions.

PBCom was one of three Philippine companies recognized in Forbes Magazine’s 2024 list of 200 publicly traded “Best Companies Under a Billion” in the Asia-Pacific region for showing robust growth despite high inflation across the world.