BPI shortens bond offer period on strong demand

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) has cut short the offer period for its peso fixed-rate bonds to only five days due to strong demand from investors.

BPI said the offering that started on March 2 ended yesterday instead of March 17. The bank is looking at raising at least P5 billion.

 “This is due to overwhelming demand from its investor base which includes institutional investors and high net-worth and retail clients,” the country’s fourth largest bank in terms of assets said in a statement.

The debt paper carries an interest rate of 4.05 percent per annum paid quarterly, with the minimum investment amount at P1 million and in additional increments of P100,000.

BPI treasurer Dino Gasmen said earlier proceeds of the fund raising activity would support the bank’s diversification of funding sources, balance sheet expansion, and general corporate purposes.

BPI Capital Corp. and ING Bank N.V., Manila Branch (ING) are the joint lead arrangers, while BPI Capital is sole selling agent and ING is the participating selling agent. State-run Development Bank of the Philippines was tapped as trustee.

The oldest bank in Southeast Asia has been tapping both the onshore and offshore debt markets to raise funds to finance its expanding loan portfolio.

Last January, BPI raised P15.3 billion via the issuance of two-year peso fixed rate bonds to fund the bank’s expansion plans and diversify its funding sources.

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