The Ayala Group’s financial services arm Bank of the Philippine Islands (BPI) is looking to raise $300 million by September this year to refinance maturing bonds of the same amount.

“We're looking at various options, but we will we will refinance that bond. I think it's just a matter of time that we're ready to refinance it, what is the method that we're going to use,” BPI Chief Finance Officer Eric M. Luchangco said in an interview.

He added that while the bond is maturing in September it does not have to be refinanced exactly on the day or that the money does not have to be raised on the same day that the bank is repaying the bondholders.

“We have some flexibility in terms of refinancing … we can refinance ahead. But the downside of refinancing ahead is that you're carrying two costs at the same time… But, we also have to look at what the market is like, if it looks like it's a very good opportunity to refinance now (if rates are low), maybe it's worth it to have that negative carry,” Luchangco explained.

He noted that they have already decided to refinance the bond but continue to look at options on how to refinance it. 

At this point, he said that time is on their side because the maturity is yet in September. 

“Between now and September, we're just continuing to watch the situation, see what our opportunities are. You can return to the bond market or get a loan, we could do another syndicated loan. We just did one last year,” Luchangco said. 

He added that they are considering both domestic and offshore debt markets for the fund-raising activity. 

Meanwhile, BPI reported a record high net income for 2023, driven by record revenues and lower provisions which offset the increase in operating expenses. 

The bank said its net income rose 30.5 percent to an all-time high of P51.7 billion last year from P39.6 billion in 2022. 

Excluding the impact of the one-off gain from the 2022 property sale, net income would be up 44.1 percent.

Fourth-quarter net income was P13.1 billion, up 44.3 percent year-on-year, also on higher revenue growth and lower provisions recognized.

The bank said its solid financial performance is a reflection of its strengthened customer franchise and deeper customer engagement which led to record volumes and market share gains in several businesses. 

Total revenues soared 16.7 percent to P138.3 billion year-on-year, attributable to the 22.7 percent increase in net interest income to P104.4 billion, as average asset base expanded 7.7 percent and net interest margin widened 50 basis points to 4.09 percent. 

Non-interest income improved 1.5 percent to P34.0 billion, on the back of record trading income gains of P5.2 billion, up 37 percent year-on-year, tempered by the three percent decline in fee income to P28.8 billion.

Removing the impact of the 2022 one-off transaction, fee income would be higher by P4.1 billion or 16.6 percent, on higher fees from credit cards, various service charges, and bancassurance.