Home Banking & Finance BPI shortens bond offer period amid ‘overwhelming demand’

BPI shortens bond offer period amid ‘overwhelming demand’

BANK of the Philippine Islands will end its bond offer ahead of schedule on the back of strong demand. — BW FILE PHOTO

BANK OF THE Philippine Islands (BPI) is ending its bond offer a week earlier than scheduled due to strong demand from investors.

The papers will only be offered until Friday, Jan. 14, “due to overwhelming demand from investors, which includes institutional investors as well as high-net-worth and retail clients,” the bank said in a filing with the local bourse.

The bond offer was originally scheduled to run from Jan. 6 to 21.

The two-year papers, which make up the fourth tranche of BPI’s P100-billion bond program, have a fixed rate of 2.8068% per annum.

BPI said it was eyeing to sell P5 billion worth of peso-denominated bonds but noted it was open to upsize the issuance.

Proceeds from the issue will fund the bank’s general corporate needs as well as debt refinancing.

BPI Treasurer Dino R. Gasmen earlier said part of the proceeds will also be used for the bank’s digitalization efforts.

Investors may buy a minimum of P1 million worth of the debt papers, with additional increments of P100,000 thereafter.

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

In August 2020, BPI raised P21.5 billion via its COVID Action Response bonds which was used to finance credit for small businesses amid the pandemic crisis.

The Ayala-led lender’s net profit increased by 3% year on year to P5.657 billion in the third quarter of 2021 amid lower credit provisions, which offset the decline in its interest earnings.

Its nine-month net profit rose by 1.8% year on year to P17.5 billion.

BPI shares went up by 10 centavos or 0.11% to close at P95.05 apiece on Thursday. – Luz Wendy T. Noble