Home Banking & Finance BPI starts offering of two-year fixed-rate bonds

BPI starts offering of two-year fixed-rate bonds

BANK of the Philippine Islands is looking to raise at least P5 billion from its offering of two-year bonds. — BW FILE PHOTO

BANK of the Philippine Islands (BPI) on Thursday started its offering of two-year bonds, with proceeds set to fund its digitalization, among other corporate needs, and to refinance its debt.

The papers being offered make up the fourth tranche of the bank’s P100-billion bond program approved in November 2019, BPI said in a statement on Thursday.

BPI is eyeing to raise P5 billion and said it is open to upsizing the issuance as well.

The peso-denominated debt papers will have a fixed rate of 2.8068% per annum, which will be paid quarterly.

The minimum investment is at P1 million, with additional increments of P100,000 thereafter.

Proceeds from the fundraising exercise will be used for the bank’s general corporate needs as well as refinancing, BPI Treasurer Dino R. Gasmen said.

“BPI will continue to invest in digital banking capabilities to better serve its customers. Digitalization will enable our branches to provide more meaningful interactions to address the increasingly complex financial needs of our clients,” Mr. Gasmen said.

The bonds will be sold from Jan. 6 to 21. They will be issued and listed on Jan. 31, although BPI and arrangers of the transaction have the option to adjust the timeline, the bank said in the statement.

BPI Capital Corp. and The Hongkong and Shanghai Banking Corp. (HSBC) are the joint lead arrangers of the offer. BPI Capital is the sole selling agent, while HSBC is a participating selling agent for the bond offering.

The Ayala-led lender in August 2020 raised P21.5 billion through its COVID Action Response bonds. The issuance’s proceeds financed credit for small businesses during the crisis.

BPI’s net income rose by 3% year on year to P5.657 billion in the third quarter of 2021, with lower credit provision offsetting the decline in interest earnings. This brought the bank’s nine-month net profit to increase by 1.8% year on year to P17.5 billion.

The bank’s shares went down by 10 centavos or 0.11% to close at P92.80 apiece on Thursday. — Luz Wendy T. Noble