BPI lists P36.6 billion bonds today

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is set to list today P36.6 billion worth of bonds on the Philippine Dealing & Exchange Corp. (PDEx), more than seven times the original size of P5 billion.

“Size was finalized at P36.6 billion,” BPI chief finance and sustainability officer Eric Luchangco told The STAR.

The strong demand for the 1.5-year fixed rate bonds due 2025 prompted the listed bank to shorten the offering period on Oct. 25 or nine days earlier than the original date of Nov. 3.

The bonds carrying an interest rate of 6.425 percent due 2025 have been met with strong interest from institutional, high net worth and retail clients.

The Ayala-led bank was originally looking at raising at least P5 billion with option to upsize and the proceeds would be used for general corporate purposes and will contribute to the bank’s funding source diversification.

BPI Capital Corp. and ING Bank Manila branch served as joint lead arrangers and selling agents of the bond issuance that is part of BPI’s P100-billion bond program.

In January, 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.

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 172-year-old bank recently raised $300 million through a syndicated loan to partially finance its maturing foreign obligations. The amount was higher than the original $200 million due to a strong reception in syndication supported by 21 lenders.