BPI Family Savings Bank (BFSB) has begun its maiden bond offering, from which it targets to raise at least P2 billion.
In a statement on Monday, the thrift bank said the bond issue will comprise the first tranche of its P35-billion bond program approved by its board of directors on Oct. 31.
The bonds have a tenor of two-and-a-half years and carry an interest rate of 4.3% per annum, which will be paid quarterly.
“The minimum investment amount is set at P100,000.00 with increments of P50,000.00 thereafter,” the bank said in a statement.
The offer period, which started yesterday, is set to run until Dec. 6. Meanwhile, the issue and listing date is targeted by Dec. 16.
BFSB’s parent bank Bank of the Philippine Islands (BPI) said the proceeds from the bond offer will be used to “support its investor base, fund its asset expansion, particularly loan growth, digitalization initiatives, and general corporate purposes.”
BPI Capital Corp. is the sole selling agent for the issue, while The Hongkong and Shanghai Banking Corp. is the sole arranger and participating agent.
BPI’s net income jumped 38.6% year on year to P8.29 billion in the third quarter, bringing its bottom line from January to September to P22.03 billion, up 29.5% from the same period last year.
The listed lender’s shares closed at P90 apiece on Monday, down by 0.44% from its previous finish. — L.W.T. Noble