THE Bank of the Philippine Islands (BPI) raised P33.9 billion from an oversubscribed issue of fixed-rate bonds, with the bank expecting clients to borrow more to weather the effects of the COVID-19 outbreak and lockdown.

In a disclosure to the bourse, the bank said the proceeds were more than six times the initial issue size of P5 billion, fueled by strong demand from institutional, high net-worth and retail investors. The total order book was P42 billion.

The bonds have a tenor of one and a half years and a coupon of 4.05%, payable quarterly.

“We thank our investors and clients who supported this bond offer despite the volatile market conditions caused by the COVID-19 situation. The issuance will help us deliver the financial services that our fellow Filipinos need during this difficult time,” BPI Treasurer Dino R. Gasmen was quoted as saying.

The bonds will trade on the Philippine Dealing & Exchange Corp. (PDEx).

The issue went through despite BPI’s earlier warnings that it might have to be shelved due to restrictions on business operations during the Luzon-wide enhanced community quarantine.

The bank closed its offer period on March 6, more than a week ahead of the initial March 17 schedule.

BPI Capital Corp. was the sole selling agent while ING Bank N.V., Manila Branch was a participating selling agent for the issuen. The two were the issue’s joint lead arrangers.

The bond issue was the second for the bank this year, following the P15.2 billion it raised in January in a peso-bond issue. The first issue was also oversubscribed after an initial offer of P3 billion.

The bank reported a net profit of P28.8 billion in 2019, up 24%, with fourth quarter net profit of P6.77 billion, up 11.6%.

BPI rose 5.7% Friday, closing at P63.95. — Beatrice M. Laforga

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