BPI returns to onshore debt market

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is returning to the domestic debt market early next year where it intends to raise at least P5 billion via the issuance of peso fixed-rate bonds.

The country’s fourth largest lender in terms of assets intends to use the proceeds of the fourth tranche of its P100-billion bond and commercial paper program for general corporate purposes including refinancing.

The latest fund raising activity, involving bonds with an indicative tenor of two years, has an option to upsize. So far, BPI has raised P70.7 billion under the borrowing program.Files

The bank last tapped the domestic debt market in August last year when it raised P21.5 billion via the first-ever COVID-19 bond offering in the country. It issued 1.75-year COVID Action Response (CARE) bonds with an interest rate of 3.05 percent per annum to help micro, small and medium enterprises recover from the impact of the global health crisis.

BPI has been tapping both the onshore and offshore debt markets for much needed funds. Under its P100-billion bond and commercial paper program, including P15.32 billion via the issuance of two-year peso fixed rate bonds last January and P33.89 billion last March 2020.

The bank has tapped BPI Capital Corp. and HSBC as the joint lead arrangers. BPI Capital is also the sole selling agent, while HSBC is a participating selling agent.

The offer period will be from Jan. 6 to 21, 2022 with the issue and listing date will be on Jan. 31, 2022.  BPI and the joint lead arrangers reserve the right to update the offer terms and the timing of any of these dates as deemed appropriate.

Investors could invest a minimum amount of P1 million and in additional increments of P100,000.

Net income of BPI inched up by 1.8 percent to P17.5 billion from January to September as lower provisioning for bad debts offset the six percent decline in total revenues to P71.6 billion.

During the nine-month period, BPI said its provision for potential loan losses cut by half to P10.3 billion during the nine-month period from a year-ago level of P20.5 billion as the country gradually recovers from the impact of the COVID-19 pandemic.