Bank of the Philippine Islands (BPI) may tap either the debt capital markets or alternative funding sources in the second half of 2026 as it weighs refinancing options for P40 billion worth of maturing bonds amid a volatile interest rate environment.
The Ayala-led lender is not rushing to accelerate borrowings despite expectations of further rate hikes, as global developments make it harder to predict market conditions over the next few months.
BPI chief finance officer Eric Luchangco said the bank is now evaluating the best route to finance these obligations, which could include a bond issuance or a corporate note issuance similar to its previous transaction with the International Finance Corp.
“It’s really a question of what do we think is the best financing for us to use at that time,” Luchangco said.
“The deeper issue potentially preventing or affecting the timing of the issue is probably the global circumstances. The Middle East conflict really created more volatility in the world,” he said.
The bank also expressed interest in issuing blue bonds to support water-related projects.
