BPI raises $600 million through fixed-rate notes

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Bank of the Philippine Islands (BPI) raised $600 million through a senior unsecured note drawdown to maximize flexibility in offshore funding and diversify its liquidity sources.

In a disclosure to the local stock exchange on Wednesday, the Ayala-led lender said it raised $600 million from its five-year Senior Unsecured Fixed Rate S Notes which fetched a coupon rate of 4.25%.

The capital raising activity marked the maiden drawdown from its $2-billion medium-term note program established in June and the debut offshore bond offering of the lender.

“The bank will issue the notes as part of its initiatives to maximize flexibility in accessing offshore funding,” BPI said in the statement.

The transaction is expected to settle on Sept. 4 and will be listed on the Singapore Stock Exchange.

The notes are expected to have an issue rating of “Baa2” by credit rater Moody’s Investors Service, a notch above the minimum investment grade. — Karl Angelo N. Vidal