Bank of the Philippine Islands, the third-largest lender in terms of assets, upsized its syndicated loan facility with other banks to $300 million from the original $200 million on strong oversubscription by investors.
“The facility received an exceptional reception in syndication, and successfully upsized from the original US$200 million to US$300 million to partially accommodate the heavy oversubscription of more than two times,” the bank said in a disclosure to the stock exchange Monday.
BPI said it signed the facility agreement for the three-year syndicated term loan facility of $300 million with Hongkong and Shanghai Banking Corp. and Standard Chartered Bank, who are collectively the mandated lead arrangers, bookrunners and underwriters of the facility.
“BPI is extremely pleased with the strong level of support that this transaction has received during syndication. We are highly appreciative of the seamless delivery that the two MLABU’s have provided in assisting BPI achieve this outcome and further extend our thanks to the diverse banking group who have joined this very important transaction for our institution,” BPI chief finance officer and chief sustainability officer Eric Roberto Luchangco said.
The facility is supported by 21 lenders, including the two MLABUs and nineteen participating lenders. HSBC is the facility agent.
Proceeds from the facility will be used to partly refinance BPI’s existing $600-million bond due September 2023 and general corporate purposes.
BPI posted a net income of P25.1 billion in the first half of 2023, up 23 percent year on year, driven by robust performance across business segments. This resulted in a return on equity of 15.5 percent.