Bank of the Philippine Islands (BPI), the lending arm of the Ayala Group, on Thursday announced plans to issue at least P5 billion worth of fixed-rate ASEAN sustainable bonds.
The bank said in a disclosure to the stock exchange the bonds, with an option to upsize, would be issued as the third tranche of its P100-billion bond program approved by its board of directors in May 2022.
BPI said it would use the proceeds from the debt offering for financing or refinancing of new or existing eligible green and/or social projects as defined under, and consistent with, its sustainable funding framework.
BPI has P20 billion worth of peso-denominated bonds, issued in January 2023, maturing by the end of July.
The planned bond offering, which will have a tenor of 1.5 years, will be offered at a minimum investment amount of P500,000 and in additional increments of P100,000.
The offer period will commence on July 18, 2024 and end on Aug. 2, 2024.
The bonds will be issued and listed with the Philippine Dealing and Exchange Corp. on Aug. 9, 2024.
BPI hired BPI Capital Corp. and Standard Chartered Bank as the joint lead arrangers and selling agents for the transaction.
The joint lead arrangers and selling agents reserve the right to update the offer terms and the periods and dates prescribed above, as deemed appropriate and with due notice.
BPI raised P36.6 billion worth of fixed-rate bonds with a coupon rate of 6.4250 percent per annum in November last year.
It also raised $400 million from the issuance of 5-year senior unsecured fixed rate US-dollar denominated bonds in March 2024, which would be used for refinancing and general corporate purposes.
BPI booked a record net income of P15.3 billion in the first three months of 2024, up 25.8 percent from last year’s.
The bank attributed the solid performance to higher revenues, which more than offset the impact of higher operating expenses and provision for losses.
Revenues in the first quarter rose 24.6 percent year-on-year to P39.5 billion.