The Securities and Exchange Commission on Thursday confirmed the planned issuance of the country’s first COVID Action Response Bonds (CARE Bonds) by the Bank of the Philippine Islands, which qualified as social bonds under the ASEAN Social Bonds Standards in the Philippines.
BPI said in a disclosure to the stock exchange it would use proceeds from the issuance to finance or refinance eligible micro-, small- and medium-enterprises under the recently established Sustainable Funding Framework.
BPI president and chief executive Cezar Consing said the BPI CARE Bonds highlighted the bank’s commitment to achieve positive social outcomes by creating value not only for its business, but also for stakeholders including clients and the communities in which it operates.
“MSMEs account for a relatively small percentage of total bank borrowings but a very large percentage of total nationwide employment. Loans to MSMEs go a long way to keeping Filipinos working. To support MSMEs is to embrace the Bayanihan spirit,” Consing said.
The bank will soon release further announcements on the planned BPI CARE Bonds. The bank said the issuance would be “in recognition of the significant contribution of micro, small and medium enterprises to the Philippine economy, and as a direct response to their needs as one of the sectors hardest hit by the global pandemic.”
“The planned offering supplements BPI’s efforts to support the recovery of MSMEs. Some of these initiatives include the loan payment deferral program that allowed businesses to delay payments without interest charges, waiver of fees for online funds transfer transactions, and discussions with state-owned Philippine Guarantee Corp. to refine its loan products for qualified clients,” it said.
BPI’s parent company, Ayala Corp., also launched the Ayala Enterprise Circle network, where MSMEs can have access to exclusive to Ayala Group solutions and offerings, expert mentorship, online dialogs and master classes and business-matching and co-marketing opportunities.
BPI is among the top universal and commercial banks in the country in terms of assets, loans, deposits and branch coverage.
The bank’s net income declined 5 percent in the first quarter to P6.39 billion from P6.72 billion a year ago on higher provisions for loan losses because of the COVID-19 pandemic.
BPI booked P4.23 billion in provisions for loan losses in the first quarter as the COVID-19 pandemic ushers in a difficult period for consumers and businesses that could lead to potentially higher non-performing loans.