The Zobels’ financial services arm, Bank of the Philippine Islands (BPI), has decided to shorten the public offering period of its P5 billion sustainable bonds due to overwhelming demand.
In a disclosure to the Philippine Stock Exchange (PSE), the bank said strong demand came from institutional, high-net-worth, and retail clients for its 1.5-year peso-denominated fixed-rate BPI Sustainable, Environmental, and Equitable Development Bonds due 2026 (BPI SEED Bonds).
It noted that while the principal amount is P5 billion, the bank has an option to upsize. The offer, which was originally set to run from July 19 to Aug. 2, 2024, will now close early on Aug. 1, 2024.
“The Bank expresses its gratitude to the investing public’s strong support for the Offer,” it added.
The BPI SEED Bonds will be issued at par value, bearing an interest rate of 6.2000 percent per annum, paid quarterly.
The planned issue and listing date of the BPI SEED Bonds on Aug. 9, 2024 with the Philippine Dealing and Exchange Corp. remains unchanged.
BPI Capital Corporation and Standard Chartered Bank are the Joint Lead Arrangers and Selling Agents of the Offer.
The bank said it will use the net proceeds of the offer to finance or refinance new or existing Eligible Green or Social Projects as defined under and consistent with BPI’s Sustainable Funding Framework.
“BPI is committed to creating value not only for its businesses but also for its stakeholders, the environment, and the communities in which it operates. It strives to have sustainability at the core of its corporate strategies, ultimately balancing its growth aspirations with its environmental and social responsibility,” the bank said.
It added that “BPI is keen to use the offer of BPI SEED Bonds as an opportunity to promote projects that contribute to the United Nations Sustainable Development Goals.”
The Securities and Exchange Commission confirmed on July 18, that the BPI SEED Bonds qualify as ASEAN Sustainability 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 environmental and social impact.