BPI raises $600 M from sale of notes

Published August 29, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola


Bank of the Philippine Islands (BPI) Logo
Bank of the Philippine Islands (BPI) Logo


The Bank of the Philippine Islands (BPI) has successfully raised US$600 million from the issuance of 5-year Senior Unsecured Fixed Rate Reg S Notes with a coupon of 4.25 percent under its US$-billion Medium-Term Note Programme.

The Notes issuance marks the first in the Bank’s 167-year history and the largest ever debut issuance for a bank in the Philippines.

BPI said it will issue the Notes as part of its initiatives to maximize flexibility in accessing offshore funding.

This offering comes after successful fixed income investor calls and roadshow meetings in Hong Kong and Singapore on August 24 and 27, 2018.

“The success of our first ever issuance of the Notes is a reflection of investors’ confidence in the credit strength of BPI,” said BPI President and Chief Executive Officer Cezar P. Consing.

He added that, “it allows us to diversify our sources of liquidity, lengthen the maturity profile of our borrowings, and manage the growth of our balance sheet more efficiently. We are grateful for the support we have received from a broad range of high quality investors.”

The offering was about three times over-subscribed, with the order book allocated predominantly to Asia, with the rest to Europe.

By investor type, the distribution comprised more than half of the Offer allocated to asset managers and fund managers, around one-third to banks, and the rest to insurance and pension funds, and private banks and other investors.

The transaction is expected to settle on September 4, 2018. The Notes will be listed on the Singapore Stock Exchange and are expected to have an Issue Rating of Baa2 by Moody’s.

BPI Capital Corporation acted as the Sole Global Coordinator and, jointly with Deutsche Bank, HSBC, and J.P. Morgan, as Joint Lead Managers and Joint Bookrunners for the drawdown.