BPI eyes initial P15 billion from bond issue

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is targeting to raise almost a third of its P50-billion peso bond and commercial paper program.

In a disclosure, the country’s fourth largest bank in terms of assets said its board approved an initial bond issuance of up to P15 billion.

“The timing of the issuance will be subject to market conditions,” BPI informed the Philippine Stock Exchange.

BPI announced last Sept. 19 it was tapping the onshore debt market via a P50-billion peso bond and commercial paper program.

The bank controlled by conglomerate Ayala Corp. has been undertaking a series of fundraising activities, tapping both offshore and onshore debt markets.

It raised P50 billion via a stock rights offer last May and another $600 million in August as part of an initial drawdown of its $2 billion medium term note program. This was the largest ever debt issuance by a Philippine bank in the offshore debt market.

BPI has been diversifying its funding sources and lengthening the maturity profile of its borrowings.

More banks are now shifting to the issuance of bonds and commercial papers instead of LTNCDs after the Bangko Sentral ng Pilipinas (BSP) released the enhanced guidelines for the fund raising activity.

Aside from BPI, banks that have announced plans to issue bonds and commercial papers include BDO Unibank of retail and banking magnate Henry Sy with P100 billion, Metropolitan Bank & Trust Co. (Metrobank) of taipan George SK Ty, Philippine National Bank (PNB) of tobacco and airline giant Lucio Tan with P20 billion, and Aboitiz-led Union Bank of the Philippines with P20 billion.