The Bank of the Philippine Islands (BPI) has issued its 1.5-year fixed-rate bonds worth P5 billion as part of its P100 billion bond program.
In a disclosure to the Philippine Stock Exchange (PSE), the bank said the net proceeds of the sale will be used for “general corporate purposes” and contribute to its “funding source diversification.”
The P5 billion comes with an option to upsize, according to the bank.
The offer for the bonds begins Oct. 17 until Nov. 3.
The target date for the issuance and listing of the finalized bond sale with the Philippine Dealing and Exchange Corp. is Nov. 13, 2023.
The latest offer is the second tranche of BPI’s bond program due 2025 issued at par value, with an interest rate of 6.425 percent per annum and payable quarterly. The tranche was approved by the Board of Directors on May 18, 2022.
The first tranche of the bonds program was the sale of the 1.5-year BPI Reinforcing Inclusive Support for MSMEs Bonds (BPI RISE Bonds) worth P20.3 billion due 2024. It aimed to financially assist eligible micro, small and medium enterprises (MSMEs) under BPI’s Sustainable Funding Framework.
To purchase the bonds, a minimum investment of P1,000,000 is required along with P100,000 for additional increments.
BPI Capital Corporation (BPI Capital) and ING Bank N.V. Manila Branch are the Joint Lead Arrangers and Selling Agents of the offer.
Updates to the offer terms, periods, and dates may be determined when needed by BPI Capital and ING Bank Manila.