BANK of the Philippine Islands (BPI) is looking to raise up to P3 billion through the issuance of peso-denominated fixed-rate bonds.
BPI said in a disclosure on Tuesday that the bonds have a tenor of two years and an interest rate of 4.2423% per annum, payable quarterly.
Proceeds from the issue will be used to back BPI’s expansion plans and diversify its funding sources, the lender said.
The bank started offering the bonds on Monday. The offer period is set to run until Jan. 17, and the listing date is set on Jan. 24.
“BPI reserves the right to adjust the timing of any of these dates as it considers appropriate,” it said.
The bank said the bonds have a minimum investment amount of P1 million and in increments of P100,000 thereafter.
Standard Chartered Bank will join BPI Capital Corp. as lead arranger for the issuance. BPI Capital Corp. will likewise be the sole selling agent of the bonds, with Standard Chartered serving as a participating selling agent.
“We are confident that investors will continue to support BPI’s fund-raising initiatives, as backed by the bank’s robust credit metrics,” BPI Treasurer Dino R. Gasmen said in the statement.
The Ayala-led bank booked a net income of P8.29 billion in the third quarter of 2019, jumping 38.6% from its profit in the comparable year-ago period.
For the first nine months of 2019, the lender’s net income was at P22.03 billion, up 29.5% from the P17.01 billion booked in the same period in 2018.
BPI’s shares ended trading at P86.80 apiece on Tuesday, up by 0.35% from its Jan. 10 close of P86.50 each. — L.W.T. Noble