THE THRIFT BANKING arm of the Bank of the Philippine Islands (BPI) has cut short its offer period for its P2-billion maiden bond issue after it saw robust market demand.
In a disclosure to the local bourse on Wednesday, BPI said BPI Family Savings Bank’s (BFSB) bond offering, which began last Monday, has already exceeded its initial target of P2 billion, which prompted the bank to cut the offer period that was supposed to run until Dec. 6.
“The bank attributes this to robust demand from both institutional investors as well as high-net-worth and retail clients,” it said.
The bonds have a tenor of two-and-a-half years and were priced on Nov. 21 at 4.3% per annum, to be paid quarterly.
BPI said the bonds will help support its thrift unit’s “drive to diversify its investor base and fund its asset expansion, particularly loan growth, digitalization initiatives, and general corporate purposes.”
The thrift bank earlier said the issue marks the first tranche of its P35-billion bond program. The papers are set for issuance and listing on the Philippine Dealing & Exchange Corp. on Dec. 16.
BPI Capital Corp. is the sole selling agent for the bonds, while The Hongkong and Shanghai Banking Corp. is the sole arranger and participating selling agent for the transaction.
Meanwhile, the Land Bank of the Philippines–Trust Banking Group is the appointed trustee for the bond issuance.
BFSB’s parent BPI’s net income jumped 38.6% year on year to P8.29 billion in the third quarter, bringing its bottom line for the January to September period to P22.03 billion, up 29.5% from the same period last year.
Its shares went up 2.13% or P1.85 to close at P88.85 apiece on Wednesday. — B.M. Laforga