BPI targets P5 billion from maiden SINAG Bonds offer

MANILA, Philippines — The Bank of the Philippine Islands (BPI) is aiming to raise P5 billion, with an option to upsize, from the maiden issuance of its Supporting Inclusion, Nature and Growth (SINAG) Bonds, the first tranche under its newly launched P200-billion bond and commercial paper program.

The peso-denominated fixed-rate bonds have a 1.5-year tenor and are priced at an interest rate of 5.85 percent per annum, payable quarterly. The public offer period runs from May 20 to May 30, while the bonds are scheduled to be issued and listed on the Philippine Dealing & Exchange Corp. (PDEx) on June 10.

A minimum investment of P500,000 is required, with additional placements in increments of P100,000.

Net proceeds from the offer will be used to finance or refinance projects aligned with BPI’s Sustainable Funding Framework, consistent with the ASEAN Sustainability Bond Standards. These projects may include those that promote environmental protection, social development and financial inclusion.

“The BPI SINAG Bonds reflect our commitment to sustainability and inclusive growth,” the bank said. “We aim to create long-term value for our stakeholders while contributing positively to society and the environment.”

On March 17, the Securities and Exchange Commission (SEC) confirmed that the SINAG Bonds qualify as ASEAN Sustainability Bonds, meaning the issuance has been independently verified to ensure that proceeds will be allocated to projects with measurable environmental and social impacts.

BPI Capital Corp. and Standard Chartered Bank are acting as joint lead arrangers and selling agents for the offering.

The bank and its arrangers reserve the right to adjust the terms of the offer, including the size, offer period and other dates, subject to appropriate disclosures.

BPI emphasized that the SINAG Bonds are not deposit instruments and are not insured by the Philippine Deposit Insurance Corp. The securities are exempt from registration under Section 9.1(e) of the Securities Regulation Code and will not be registered with the SEC.