BPI sees delay in bond issue, BDO postpones planned offer

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SOME BANKS are deferring or expecting delays in their bond issuances after business operations were affected by the enhanced community quarantine in Luzon.

In a disclosure to the local bourse on Wednesday, Bank of the Philippine Islands (BPI) said the issuance and listing of the P42 billion it raised early this month could be delayed due to restrictions on business operations amid home quarantine protocols.

“BPI anticipates that the actual issuance and/or listing of the Bonds may be delayed until the restrictions on business operations are lifted,” the disclosure read.

It said further announcements will be made regarding the final dates.

However, the bank assured its investors that it “remains committed to proceed to settlement, issuance and listing of the peso fixed-rate bonds as scheduled.”

The lender said it is coordinating with regulators, government authorities and transacting parties including the Trustee, PDTC and Philippine Dealing and Exchange Corp. (PDEx) to proceed with the issuance and listing “as soon as possible.”

“There can be no assurance that any delay caused by the Government Quarantine guidelines will not affect the final volume of the Bonds. BPI continues to monitor the COVID-19 (coronavirus disease 2019) situation and government directives as circumstances develop. The current business and operational restrictions may be increased or lifted (in whole or in part) but the timing of any changes cannot be predicted,” it added.

Separately, BDO Unibank, Inc. said in its own stock filing that it will also postpone its offer of P5-billion two-and-a-half year bonds to give investors a chance to reassess their investments and liquidity amid disruptions caused by the 30-day lockdown.

BDO did not respond as of press time when asked for more details.

Meanwhile, the bank assured that its branches and offices will remain open and operations will continue amid the one-month quarantine. — B.M. Laforga





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