The Bank of the Philippine Islands has priced its 1.5-year Peso Fixed-Rate Bonds due 2024 called BPI Reinforcing Inclusive Support for MSMEs Bonds (BPI RISE Bonds), with an aggregate principal amount of P5 billion with option to upsize.
In a disclosure to the Philippine Stock Exchange, the bank said the BPI RISE Bonds will be issued at par value, bearing an interest rate of 5.75 percent p.a., paid quarterly.
Applications to purchase the BPI RISE Bonds will have a minimum investment amount of P1 million and additional increments of P100,000.
BPI will use the net proceeds of the offer to finance or refinance the business requirements of eligible Micro, Small and Medium Enterprises (MSMEs) in accordance with BPI’s Sustainable Funding Framework.
The BPI RISE Bonds’ offer period will begin January 9, 2023 and will end earlier than previously announced.
The final day of the offer will now be January 13, 2023—one week earlier than the original date of January 20, 2023. The planned issue and listing date of January 30, 2023 is unchanged.
BPI said it is keen to use the offer of BPI RISE Bonds as an opportunity to support MSMEs, which the Bank sees as significant contributors to the Philippine economy.
In fact, the Philippine Securities and Exchange Commission has confirmed that the BPI RISE Bonds qualify as ASEAN Social Bonds.
Bonds carrying this classification have been independently verified to have systems in place to ensure that proceeds raised will be directed toward projects that benefit society.
This gives bondholders confidence that their investments will be used to make a positive social impact.
BPI Capital Corporation (BPI Capital) and ING Bank N.V., Manila Branch (ING) are the Joint Lead Arrangers of the offer; BPI Capital is the Sole Selling Agent.