BANK of the Philippine Islands (BPI) is looking to raise at least P3 billion from its COVID (coronavirus disease 2019) Action Response (CARE) Bonds which will comprise the third tranche of its P100-billion bond program.

In a filing with the local bourse on Monday, BPI said the papers will have an annual rate of 3.05% with a tenor of 1.75 years and payable quarterly.

“The proceeds of the CARE Bonds will be used to finance and refinance eligible Micro, Small and Medium Enterprises (“MSMEs”) under the Bank’s Sustainable Funding Framework,” BPI said in a statement.

The bank said the minimum investment for the bonds is set at P1 million, with increments of P100,000 thereafter.

BPI Capital Corp. will be the sole selling agent for the bonds while The Hongkong and Shanghai Banking Corp. (HSBC) will serve as a participating selling agent. Both BPI Capital and HSBC are the lead arrangers of the CARE Bonds.

The offer period for the bonds started Monday and is set to run until July 17, while the issue and listing date is scheduled on Aug. 7.

“The bank and the joint lead arrangers may agree to adjust the timing of any of these dates as considered appropriate,” it said.

BPI sold P33.9 billion worth of bonds from its issuance in March. The papers, which were oversubscribed by more than six times, have a tenor of one and a half years and an interest rate of 4.05% payable quarterly.

BPI’s shares finished trading at P73 apiece on Monday, up by 40 centavos or by 0.55% from the previous close. — L.W.T. Noble