BPI sells P33.9 billion bonds in oversubscribed issue

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) said it raised P33.9 billion as investors and high net-worth retail clients swarmed its bond issuance amid the volatile market environment.

BPI said the amount was more than six times the original issue size of P5 billion as the consolidated order book reached P42 billion despite being priced at the tightest end of the indicative pricing range.

The strong demand prompted the bank to close the offer period last March 6, 11 days ahead of the original schedule of March 17.

BPI treasurer Dino Gasmen said investors and clients supported the bond offer despite the volatile market conditions caused by the COVID-19 situation.

“The issuance will help us deliver the financial services that our fellow Filipinos need during this difficult time,” Gasmen said.

The bonds with a tenor of one-and-a-half years with an interest rate of 4.05 percent per annum are now tradable on the Philippine Dealing & Exchange Corp. (PDEx).

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

Last November, BPI decided to double the size of its bond and commercial paper program to P100 billion to support the bank’s diversification of funding sources, balance sheet expansion, and for general corporate purposes.

During its maiden issuance, the bank raised P25 billion in December 2018, followed by another P15.3 billion via the issuance of peso fixed-rate bonds due 2022 last January.

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

The bank also tapped the offshore debt market last year raising 100 million Swiss francs from its maiden ASEAN Green bond issuance to bankroll green eligible projects and another $300 million as it became the first Philippine bank to issue US dollar-denominated ASEAN green bonds.