Zobel-led Bank of the Philippine Islands has successfully tapped the international capital markets to raise $800 million, its largest issuance size in a single transaction, which it will use for refinancing and general corporate purposes.
In a disclosure to the Philippine Stock Exchange, the bank said the amount was raised via a public bond offering of $500 million five-year and $300 million 10-year Reg S senior unsecured fixed rate notes offering under its $3 billion Medium Term Note Programme.
BPI announced the transaction mandate on March 26, 2025, and conducted a comprehensive investor marketing exercise involving a global investor call and a series of meetings covering investors across Hong Kong, Singapore, and Europe.
After receiving constructive investor feedback, BPI proceeded to launch the transaction bookbuilding with an Initial Pricing Guidance (IPG) for the 5-year and 10-year Notes of T+130 basis points (bps) area and T+155bps area respectively.
Final price guidance was released at T+105 bps (the number) and T+130 bps (the number) for the 5-year and 10-year Notes, respectively, representing a pricing compression from IPG of 25 bps across both tenors.
In terms of geographic allocation for the 5-year Notes, 93 percent of the Notes were distributed to Asia and the remaining seven percent to EMEA accounts.
The 5-year Notes were distributed to high-quality fixed income accounts: 52 percent to Fund Managers, 35 percent to Banks and Financial Institutions, 12 percent to Private Banks and Corporates, and one percent to Insurance.
In terms of geographic allocation for the 10-year Notes, 82 percent of the Notes were distributed to Asia and the remaining 18 percent to EMEA accounts.
The 10-year Notes were also distributed to high quality fixed income accounts: 47 percent to Fund Managers, 23 percent to Insurance and Official Institutions, 16 percent to Banks and Financial Institutions, and 14 percent to Private Banks and Corporates.
The 5-year Notes were priced at a spread of 105 bps over the prevailing 5-year U.S. Treasury, with a fixed coupon of 5.00 percent. The 10-year Notes were priced at a spread of 130 bps over the prevailing 10-year U.S. Treasury, with a fixed coupon of 5.625 percent. The Notes are rated BBB+ by S&P.
The transaction is expected to settle on April 7, 2025. BPI Capital Corporation was the Sole Global Coordinator, along with BofA Securities, HSBC, J.P. Morgan and UBS, as Joint Bookrunners for the transaction.