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Saturday, December 9, 2023

BPI eyes P5b from fixed-rate bond offering

Bank of the Philippine Islands, the third-largest lender in terms of assets, said Tuesday it will offer peso-denominated fixed-rate bonds worth P5 billion due 2025.

BPI said in a disclosure to the stock exchange the issuance is the second tranche of its P100-billion bond program approved by its board of directors on May 18, 2022.

“The net proceeds of the offer will be used for general corporate purposes, including funding source diversification,” BPI said.

The bonds will have a tenor of one and one-half years and will be offered at a minimum investment amount of P1,000,000 and in additional increments of P100,000. The offer period will commence on Oct. 17, 2023 and end Nov. 3, 2023.

The bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on Nov. 10, 2023.

BPI Capital Corp. and ING Bank N.V., Manila Branch are the joint lead arrangers and selling agents of the issuance.

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.

Total revenues rose 13.8 percent to P65.6 billion, on the back of the 27.4-percent increase in net interest income to P50.1 billion, as the average asset base expanded 9.2 percent and net interest margin widened 56 basis points to 4.03 percent.

BPI booked a net income of P13.0 billion in the second quarter, up 4.5 percent year-on-year. Total revenues reached P33.9 billion in the quarter, up 4.9 percent, as the decline in non-interest income offset the increase in net interest income.

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