The Union Bank of the Philippines is expecting to raise at least 1 billion pesos in a digital peso bond offering.

The bonds will have a tenor of 1.5 years and a fixed rate of 3.25% per annum. It is the first digital peso bond issuance in the Philippines, according to a May 23 media release.

The lender will issue the digital bonds under its existing 39 billion peso bond program, with the public offer period commencing May 23 and ending May 27.

On June 2, the bonds will be listed on the Philippine Dealing & Exchange Corp. for trading in the fixed-income market.

The Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank are the joint lead arrangers and book runners of the offering, and are also the selling agents alongside Union Bank.

As of May 23, US$1 was equivalent to 52.26 Philippine pesos.