BPI issues P15.3 B fixed rate bonds
Lawrence Agcaoili (The Philippine Star) - January 25, 2020 - 12:00am

MANILA, Philippines —  Ayala-led Bank of the Philippine Islands (BPI) raised P15.3 billion as it returned to the domestic debt market via the issuance of two-year peso fixed rate bonds to fund the bank’s expansion plans and diversify its funding sources.

The proceeds from the issuance of the bonds with an interest rate of 4.2423 percent per annum was more than five timeazs the initial target size of P3 billion amid strong demand from both retail and institutional investors.

BPI treasurer Dino Gasmen attributed the successful fund raising activity to the unwavering trust and support of both retail and institutional investors to BPI.

“Our bonds offer an attractive return to investors. The funds raised put us in a better position to provide financial services to more clients – individuals, small and medium businesses, and big corporations to fund a housing project, a new car, or their businesses,” Gasmen said.

The country’s third largest private bank in terms of assets launched a P50-billion bond and commercial paper program in September 2018 to raise funds to finance the expansion of BPI’s loan book.

Of the total amount, the 168-year old bank raised P25 billion last December 2018 via the maiden issue of fixed rate bonds due 2020.

Last November, BPI decided to double the size of its bond program to P100 billion.

“The issuance is BPI’s second peso bond transaction, following its landmark P25 billion bond issuance in 2018,” the bank said.

BPI Capital Corp. and Standard Chartered Bank served as the joint lead arrangers of the bonds. BPI Capital was sole selling agent, while Standard Chartered Bank was participating selling agent.

The country’s oldest bank has been tapping both the onshore and offshore debt markets to raise funds to finance its expanding loan portfolio.

BPI raised P3.12 billion from the issuance of long-term negotiable certificates of time deposits (LTNCDs) due 2025 last October.

In the offshore debt market, the Ayala-led bank raised $300 million as it became the first Philippine bank to issue dollar-denominated ASEAN green bonds.

It also yielded the lowest coupon and yield ever paid for a US dollar-denominated bond from the Philippines as well as the lowest credit spread ever paid by a Philippine bank.

  • Latest
  • Trending
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with