Bank of the Philippine Islands (BPI) said Tuesday it raised P40 billion from its Supporting Inclusion, Nature and Growth (SINAG) bond issuance, driven by strong investor demand.
BPI treasurer Dino Gasmen said at the bond listing ceremony at the Philippine Dealing & Exchange Corp. (PDEx) the offering was eight times oversubscribed against a base offer of P5 billion.
Gasmen said while total demand was robust, the bank chose to raise P40 billion as the funds are earmarked for eligible green and social projects under BPI’s Sustainable Funding Framework.
“This issuance is not just a financial milestone, but an expression of our shared belief across institutional, high-net worth, and retail clients that banking can be a catalyst for positive change,” said Gasmen, who is also BPI’s head of global markets.
“The enthusiastic response to the BPI SINAG Bonds reflects a growing alignment between capital markets and sustainability. We are honored by the trust placed in us and excited to channel these funds into projects that directly benefit communities and the environment,” he said.
The 1.5-year SINAG bonds carry an interest rate of 5.85 percent per annum.
BPI Capital Corp. and Standard Chartered Bank served as joint lead arrangers and selling agents for the offer.
PDEx president Stephanie Zulueta welcomed BPI’s fourth thematic bond listing, following CARE bonds in 2020, RISE bonds in 2023 and SEED bonds in 2024.
“It is good to see the banking sector continuing to lead the Philippine momentum in the issuance of the green, social, and sustainability bonds, underscoring the local bond market’s commitment to responsible resource allocation,” Zulueta said.
She said the strong demand for BPI SINAG bonds reflects the market’s confidence in BPI and its sustainability bonds.
Zulueta said she expects more banks and large corporate issuers to return to the bond market in the next two months.