BPI to raise P5 B from bond sale

Ayala-led Bank of the Philippine Islands (BPI) will issue a P5-billion fixed-rate, 1.5-year bonds on Oct. 17, proceeds of which will be used to finance operations and other “general corporate purposes”.

In a statement Tuesday, Sept. 26, following a late disclosure to the Philippine Stock Exchange on Monday, the country's third biggest bank said the bonds due 2025 is the second tranche of its P100-billion bond program that its Board of Directors approved on May 18, 2022.

The P5-billion issuance carries an upsize option, depending on market demand.

“The net proceeds of the Offer will be used for general corporate purposes, including funding source diversification,” according to BPI.

The 1.5-year bonds will be offered at a minimum investment amount of P1 million and in additional increments of P100,000.

BPI will offer and issue the bonds on Oct. 17, 2023 until Nov. 3, 2023.

It said the bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on Nov. 10, 2023.

BPI Capital Corp. and ING Bank N.V. are the Joint Lead Arrangers and Selling Agents of the offer.

“BPI, together with the Joint Lead Arrangers, reserves the right to update the Offer terms and the periods and dates prescribed above, as deemed appropriate and with due notice,” said the bank.

BPI has previously issued fixed-rate, 1.5-year bonds worth P20.3 billion called "BPI RISE Bonds" or the MSMEs Bonds. 

The bonds due 2024 were the first tranche under its bond program. It will finance MSMEs under the BPI's Sustainable Funding Framework. MSMEs is short for micro, small and medium enterprises. 

In the first six months, BPI posted a 23 percent growth in net income to P25.1 billion from the P20.4 billion same time in 2022. As of end-June, its return on equity rate is at 15.5 percent.

The bank continues to expand its asset base, margins and will maintain lower credit provisioning to help its income position.

As of end-June, the bank reported revenues of P65.6 billion, up 13.8 percent from same time last year of P57.6 billion.

Total assets, meantime, stood at P2.7 trillion as of end-June, up 8.9 percent year-on-year while its return on assets was at 1.92 percent.