Bank of the Philippine Islands, the third-largest lender in terms of assets, plans to raise up to P3 billion from the issuance of peso fixed-rate bonds to support growth and diversify funding sources.
BPI said in a statement Tuesday the offer period would run from Jan. 13 to 17, 2020.
“Proceeds from this bond offering will support the bank’s expansion plans and diversify funding sources,” it said.
The bonds will have a tenor of two years and an interest rate of 4.2423 percent per annum, paid quarterly, with the minimum investment amount of P1,000,000 in increments of P100,000 thereafter.
The issue and listing date for the bonds is Jan. 24, 2020. BPI said it reserves the right to adjust the timing of any of these dates as appropriate.
“We are confident that investors will continue to support BPI’s fund-raising initiatives, as backed by the bank’s robust credit metrics,” BPI treasurer Dino Gasmen said.
BPI Capital Corp. and the local unit of Standard Chartered Bank are the joint lead arrangers of the bonds. BPI Capital Corp. is the sole selling agent, while Standard Chartered Bank is the participating selling agent.
BPI remains one of the biggest universal and commercial banks in the country in terms of assets, loans, deposits and coverage.
BPI booked a 29.5-percent increase in net income to P22.03 billion in the first nine months of 2019 from P17.01 billion a year ago after a strong performance in the third quarter.
Revenues surged by 24.8 percent to P71 billion from January to September compared to P56.89 billion in the same period a year ago.
The bank’s loan book rose by 8.2 percent to P1.37 trillion in the first nine months from P1.27 trillion a year earlier on the back of higher consumer and corporate loans.
BPI’s deposit base rose 5 percent to P1.62 trillion from P1.54 trillion, translating into a CASA deposit ratio of 69.1 percent and a loan-to-deposit ratio of 84.7 percent.
The bank’s non-interest income reached P22.34 billion in the nine-month period, a 37.5 percent increase from a year ago’s P16.01 billion, driven by higher securities trading gains and fee-based income.