BANK OF THE Philippine Islands (BPI) on Friday closed its bond offer period, days ahead of the March 17 schedule amid strong demand, with the proceeds meant to diversify the bank’s funding sources and finance its business operations.
In a disclosure to the local bourse, the Ayala-led bank said it decided to shorten the period as the offer was met with strong demand from institutional, high-net worth and retail investors.
The papers have a tenor of 1.5 years and an interest rate of 4.05% per annum payable quarterly.
BPI said the fundraising activity will “support its diversification of funding sources, balance sheet expansion, and general corporate purposes.”
The bank was programmed to raise P5 billion from the offer, with an option to upsize.
Sought for further details, the lender declined to disclose the amount raised and the total order book.
The papers will be issued and listed on the Philippine Dealing & Exchange Corp. on March 27.
This issue marks the bank’s second bond offer this year, following the P15.3 billion it raised in January via two-year bonds. The total volume raised was an upsize of its initial offer of P3 billion.
BPI Capital Corp. and ING Bank N.V., Manila Branch served as the joint lead arrangers for the transaction, with the former as the sole selling agent and latter as the participating selling agent. Development Bank of the Philippines’ Trust Banking Group was the appointed trustee for the offer.
The bank’s net profit jumped 24% to P28.8 billion in 2019 driven by higher revenues, with its fourth quarter net earnings reaching P6.77 billion, up 11.6%.
BPI shares closed at P74.80 apiece on Friday, down 2.86% or by P2.20 from Thursday’s close of P77 each. — Beatrice M. Laforga
