Bank of the Philippine Islands, the third-largest lender in terms of assets, plans to raise up to P3 billion through the offering of long-term negotiable certificates of time deposits to support expansion plans.
The bank said in a statement Tuesday the LTNCDs—whose offering started Monday—would diversify its funding sources and offer investors an attractive investment instrument.
BPI has the option to increase the amount of LTNCDs that will carry a tenor of five and a half years and an interest rate of 4 percent per annum, paid quarterly. The minimum investment amount is set at P1 million, with increments of P100,000 thereafter.
The offering period will last until Oct. 18, 2019, with the issue and listing date set for Oct. 25, 2019. BPI reserved the right to adjust the timing of the offer as needed.
BPI tapped Hongkong and Shanghai Banking Corp. Ltd. as sole arranger and participating selling agent of the deal, and BPI Capital Corp. as the lone selling agent.
BPI’s offering of $300 million in senior unsecured fixed-rate Asean green bond in early September was more than four times oversubscribed due to strong demand from investors. The offering was a drawdown under its $2-billion medium-term note program.
The bank will use the net proceeds from the bonds to finance or re-finance “green” eligible projects, as further described in BPI’s Green Finance Framework,” it said.
BPI in June 2019 established a Green Finance Framework, highlighting its long-standing commitment to fund projects with clear environmental benefits.
The framework is aligned with the International Capital Market Association Green Bond Principles, the ASEAN Green Bond Standards and the Loan Market Association Green Loan Principles.
BPI is upbeat on the growth outlook in the second half of the year, taking into account the strength of its core businesses.
BPI posted a P7.01-billion net income in the April-June period, up 46.8 percent year-on-year. The figure brought the first-half net income to P13.74 billion, up 25 percent from P11.03 billion a year ago.
Total revenues in the first half climbed 23 percent to P45.9 billion on year due to the 24-percent growth in net interest income that reached P32.36 billion.