Bank of the Philippine Islands (BPI) said Friday it raised $800 million from the issuance of 10- and 5- year Reg S senior unsecured fixed-rate notes overseas.
BPI said in a disclosure to the stock exchange Friday it issued $500 million 5-year notes with a fixed coupon rate of 5 percent and $300 million 10-year with 5.625 percent.
The 5-year notes were priced at a spread of 105 basis points (bps) over the prevailing 5-year US Treasury, while the 10-year notes were priced at a spread of 130 bps over the prevailing 10-year US Treasury.
The notes were issued under BPI’s $3-billion medium term note program, and the net proceeds will be used for refinancing and general corporate purposes.
BPI said the offering received strong demand from investors.
It said that in terms of geographic allocation for the 5-year notes, 93 percent were distributed to Asia and the remaining 7 percent to EMEA accounts.
The 5-year notes were distributed to high-quality fixed-income accounts: 52 percent to fund managers, 35 percent to banks and financial institutions, 12 percent to private banks and corporates and 1 percent to Insurance.
It said for the 10-year notes, 82 percent of the notes were distributed to Asia and the remaining 18 percent to EMEA accounts. The notes were also distributed to high quality fixed income accounts: 47 percent to fund managers, 23 percent to insurance and official institutions, 16 percent to banks and financial institutions, and 14 percent to private banks and corporates.
The transaction is expected to settle on April 7, 2025.
BPI Capital Corp. was the sole global coordinator, along with BofA Securities, HSBC, J.P. Morgan and UBS, as joint bookrunners for the transaction.
Meanwhile, BPI announced new mobile check deposit requirements starting next month.
It said that starting April 1, 2025, BPI clients would be required to use the updated format when depositing checks through the BPI Mobile Check Deposit facility.
Clients are encouraged to begin using the new format, as it is already available and accepted on the BPI app.