BPI raises P20.3 billion from RISE Bonds

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) raised P20.3 billion through the issuance of peso fixed-rate bonds to boost its lending portfolio for micro, small, and medium enterprises (MSMEs).

The amount was more than four times the original issue size of P5 billion for the BPI Reinforcing Inclusive Support for MSMEs Bonds due 2024, with an interest rate of 5.75 percent per annum.

The 1.5-year bonds will be listed on the Philippine Dealing and Exchange Corp. (PDEx) on Jan. 30. The bank decided to cut short the offering period to between Jan. 9 and 13 instead of the original schedule of Jan. 9 to 20.

“BPI is keen to use the offer of BPI RISE Bonds as an opportunity to support MSMEs, which the bank sees as significant contributors to the Philippine economy,” BPI said in an earlier statement.

BPI Capital Corp. and ING Bank NV Manila Branch served as joint lead arrangers, while BPI Capital was the sole selling agent.

The Securities and Exchange Commission (SEC) has confirmed that the BPI RISE Bonds qualify as ASEAN Social Bonds. Bonds carrying this classification have been independently verified to have systems in place to ensure that proceeds raised will be directed toward projects that benefit society.

“This gives bondholders confidence that their investments will be used to make a positive social impact,” the bank said.

The 171-year old bank  recognizes the significant contributions of MSMEs to the Philippine economy, as MSMEs account for 99.6 percent of businesses and 64.7 percent of total employment in the country.

In May last year, BPI established a new P100 billion bond and commercial paper program after using up its previous P100 billion borrowing program established in late 2019.

The bank last tapped the onshore debt market in January last year when it raised P27 billion via the issuance of two-year bonds due 2024.