BANK OF THE Philippine Islands (BPI) raised P15.3 billion in peso-denominated bonds following strong demand, marking its second largest issuance to date in the local debt market.
In a disclosure to the local bourse on Friday, the Ayala-led lender said the amount raised was more than five times its initial offer of P3 billion. It said the bank decided to upsize due to strong demand from both retail and institutional investors.
BPI said the bonds have a tenor of two years and carry an interest rate of 4.2423% per annum. Interest payments will be made quarterly while the principal will be settled at the maturity date.
This issue was the lender’s second largest peso bond issue next to the P25 billion bond issuance it had in 2018.
“The bonds have been issued, and are now tradable on the Philippine Dealing & Exchange Corp. (PDEx),” the bank said in the statement.
Earlier, the lender said the proceeds from the issue will be used to diversify its funding sources and also support its expansion plans.
BPI Capital Corp. was the sole selling agent for the bonds while Standard Chartered Bank’s Philippine Branch acted as a participating selling agent in the transaction. The two banks also served as the joint lead arrangers of the issue.
BPI in November 2018 raised P25 billion in fresh funds for the bank’s expansion plans, upsized from its initial guidance of P5 billion.
The fixed-rate notes carry a coupon of 6.797% per annum to be paid quarterly until March.
The Ayala-led lender also raised P3 billion via long-term negotiable certificates of time deposit (LTNCTD) in October last year. The notes have a tenor of five-and-a-half years and carry an interest rate of four percent per annum.
BPI 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.
In nine months to September 2019, the lender’s net profit was at P22.03 billion, up 29.5% from the P17.01 billion booked in the same period in 2018.
BPI shares inched up 0.43% or by 35 centavos to end at P82.25 apiece on Friday. — Beatrice M. Laforga