BPI eyes $2 billion from offshore debt market

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is raising as much as $2 billion from the offshore debt market with the establishment of a medium term note program.

In a disclosure, BPI said its board of directors approved the fund raising activity which aims to raise $2 billion or its equivalent in other currencies last Wednesday.

“The program is part of the bank’s initiatives to maximize flexibility in accessing funding expediently,” BPI told the Philippine Stock Exchange (PSE).

It added the issuance of notes under the program is subject to market conditions and would be determined by requirements of the bank’s business.

BPI’s asset base booked a double-digit growth of 10.4 percent to P1.91 trillion as of end-March, while its capital rose 10.3 percent to P189.54 billion. This translated to a capital adequacy ratio of 13.55 percent and a common equity tier-1 ratio of 12.65 percent.

The 166-year-old bank recently raised P50 billion from a stock rights offering. Proceeds would be used to fund BPI’s growth strategy.

BPI president and chief executive officer Cezar Consing said the bank has intensified its digitalization efforts to support rapid growth, enable more convenient and efficient banking for clients, and increase financial inclusion towards a “cash-lite” economy.

He said the ultimate objective is to elevate the bank’s digital infrastructure, to bring innovative services to existing and future clients, as well as to support the initiative of the Bangko Sentral ng Pilipinas (BSP) to develop a National Retail Payment System (NRPS).

“It’s about shaping and creating a whole new experience for our customers through digitalization, offering them a better, safer, more convenient way to bank with us. A cash-lite economy will bring significant benefits to our country,” Consing said.

He said the long-term digitalization journey would enhance BPI’s extensive network of ATMs, cash acceptance machines (CAMs), online facility, and mobile app to offer convenient, self-service banking.