Ayala-led Bank of the Philippine Islands (BPI) is planning to increase the frequency of its fund-raising activities, potentially moving toward monthly bond issuances, after a ₱50 billion offering saw demand surge to 10 times the initial target.

BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco said the lender is seeking to capitalize on high market liquidity and a favorable regulatory environment.

Limcaoco noted that while the bank has programmed additional offerings into its schedule, the timing remains opportunistic.

He emphasized that both Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission (SEC) are actively pushing to develop the local bond market to strengthen the country’s capital markets.

From a regulatory standpoint, bonds offer a more efficient financing mechanism than traditional deposits, Limcaoco said. By earmarking proceeds for specific needs—such as green or sustainable projects—the bank can promote responsible lending that directly benefits the community.

While future issuances may not match the ₱50 billion scale of the recent tranche, BPI aims to establish a consistent yield curve and provide a broader array of investment products for its clients.

Limcaoco said the eventual goal is to offer bonds monthly, though the bank is still refining the operational requirements for such a schedule.

BPI Treasurer and Head of Global Markets Dino Gasmen echoed this strategy, noting that smaller, more frequent issuances would allow the bank to reach a wider customer base.

By providing more entry points throughout the year, the lender hopes to accommodate investors who may not have liquidity available during the typical semi-annual issuance windows. Until the bank is ready for a monthly cadence, Gasmen said BPI will continue to favor opportunistic timing to maximize volume from its investor pool.

The bank’s latest offering, dubbed the BPI SIGLA Bonds, raised ₱50 billion, significantly exceeding the base issue size of ₱5 billion. These fixed-rate, peso-denominated instruments represent the second tranche of BPI’s ₱200 billion Bond and Commercial Paper Program, which was approved by the board in October 2024. The two-year bonds carry an interest rate of 5.4050 percent per annum, with coupons paid quarterly.

Classified as ASEAN Social Bonds, the SIGLA issuance aligns with regional environmental, social, and governance benchmarks.

Net proceeds are earmarked to finance or refinance social projects under the bank’s sustainable funding framework. According to Gasmen, the issuance marks a milestone in the bank's efforts to promote inclusive growth and support underserved sectors within the Philippine economy.