BPI taps arrangers, dealers of $2 B notes

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) has named the arrangers and dealers of its $2 billion medium term note program as it plans to tap the offshore debt market for fresh funds.

The country’s third largest bank in terms of assets has designated BPI Capital Corp. as sole global coordinator and lead arranger, while Deutsche Bank, HSBC, and J. Morgan were appointed joint lead arrangers.

On the other hand, BPI Capital, Deutsche Bank, HSBC, JP Morgan, BofA Merrill Lynch, Citigroup, ING, Mizuho Securities, MUFG, Standard Chartered Bank, UBS, and Wells Fargo Securities were appointed dealers.

The medium term note program in the aggregate amount of $2 billion or its equivalent in other currencies was successfully established last June 21.

BPI said the fund raising activity is part of its initiatives to maximize flexibility in accessing funding expediently.

The 166-year old bank added the issuance of notes to be listed on the Singapore Stock Exchange Securities Trading Ltd. 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.

It recently raised P50 billion from a stock rights offering. Proceeds would be used to fund BPI’s growth strategy.

Earnings of BPI amounted to P6.25 billion in the first quarter of the year as revenue inched up 2.7 percent to P18.45 billion from January to March compared to P17.96 billion in the same period last year.

Its net interest income rose 8.9 percent to P12.51 billion from P11.49 billion on account of the expansion in average asset base. The bank said its interest income from loans grew 18.4 percent driven by the improvement in loan yields.