BANK of the Philippine Islands (BPI) is looking to raise fresh funds via a benchmark-sized issuance of dollar-denominated senior unsecured five-year notes, it said on Tuesday.

The benchmark-sized Regulation S bonds will be available for a minimum investment amount of $200,000 and in denominations of $1,000 thereafter, the Ayala-led bank said in a disclosure to the local bourse.

A benchmark-sized issuance is worth at least $500 million.

The senior unsecured fixed-rate notes will be priced at around 140 basis points above the five-year US Treasury bond’s yield, BPI said. The bonds were expected to be priced on Tuesday.

The issue will be listed on the Singapore Exchange Securities Trading Ltd.

The notes will be issued out of BPI’s $3-billion medium-term note program.

The proceeds of the issuance will be used “for refinancing and general corporate purposes,” BPI said.

BPI Chief Finance Officer and Chief Sustainability Officer Eric Roberto M. Luchangco earlier said the bank will look to raise at least $300 million via dollar-denominated bonds to refinance its existing debt maturing in September.

The bank has mandated BPI Capital Corp. as the sole global coordinator and lead arranger for the issue, with J.P. Morgan Securities plc, Mizuho Securities Asia Ltd., Standard Chartered Bank, and UBS AG Singapore Branch also being tapped as joint lead arrangers.

BPI also tapped SyCip Salazar Hernandez & Gatmaitan to be the legal adviser for the issuer for Philippine law, while Romulo Mabanta Buenaventura Sayoc & de los Angeles will be the legal adviser for the joint lead arrangers.

Milbank (Hong Kong) LLP was also mandated as the legal adviser to the joint lead arrangers for English law, while Milbank LLP is the legal adviser of the Hongkong and Shanghai Banking Corp. Ltd., who is the trustee.

BPI expects the notes to be rated “Baa2” by Moody’s Ratings, in line with the Philippines’ sovereign debt.

The Ayala-led bank’s attributable net income rose by 61.13% year on year to P54.82 billion in 2023 on the back of higher revenues and lower loan loss provisions.

BPI’s shares climbed by P2.20 or 1.83% to close at P122.70 apiece on Tuesday. — A.M.C. Sy