BPI upsizes loan facility by 50% to $300 M
Published Jul 31, 2023 10:31 am
Bank of the Philippine Islands (BPI) has upsized its three-year syndicated term loan facility by 50 percent to $300 million from the original $200 million due to strong demand.
In a disclosure to the Philippine Stock Exchange, the bank said it has signed the facility agreement for the loan facility with The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Standard Chartered Bank (SC), the mandated lead arrangers, bookrunners and underwriters (MLABUs).
BPI said “the Facility received an exceptional reception in syndication, and successfully upsized from the original $200 million to $300 million to partially accommodate the heavy oversubscription of more than two times.”
“BPI is extremely pleased with the strong level of support that this transaction has received during syndication,” said BPI Chief Finance Officer and Chief Sustainability Officer Eric Roberto M. Luchangco.
He added that, “We are highly appreciative of the seamless delivery that the two MLABU’s have provided in assisting BPI achieve this outcome and further extend our thanks to the diverse banking group who have joined this very important transaction for our institution.”
The facility is supported by a total of 21 lenders, including the two MLABUs and 19 participating lenders. HSBC is the facility agent.
Proceeds from the facility will be used to partly refinance BPI’s existing $600 million bond due September 2023, as well as for general corporate purposes.
BPI capped the first half of 2023 with a 23 percent growth in net income to P25.1 billion from the P20.4 billion earned in the same period last year for a return on equity of 15.5 percent.
The bank said drivers of its strong financial performance were average asset base expansion, margin growth, and lower provisions.
Total revenues for the first semester of the year improved 13.8 percent to P65.6 billion in the first semester of 2023 from P57.6 billion in the first half last year.
This came on the back of the 27.4 percent increase in net interest income to P50.1 billion, attributable to average asset base expansion of 9.2 percent and net interest margin widening by 56 basis points to 4.03 percent.
However, this was tempered by the 15.4 percent decline in non-interest income to P15.5 billion due to the property sale gain recognized in the prior year.