BPI prices fixed-rate peso bonds at 5.75%

MANILA, Philippines — Bank of the Philippine Islands (BPI) has priced its fixed-rate peso bonds at 5.75 percent per annum to raise at least P5 billion to boost its lending portfolio for micro, small and medium enterprises (MSMEs).

The Ayala-led bank is issuing 1.5-year BPI Reinforcing Inclusive Support for MSMEs Bonds due 2024 from Jan. 9 to 13 instead of the previously announced Jan. 9 to 20.

“BPI is keen to use the offer of BPI RISE Bonds as an opportunity to support MSMEs, which the bank sees as significant contributors to the Philippine economy,” the bank said in a statement.

BPI Capital Corp. and ING Bank NV Manila Branch are serving as joint lead arrangers, while BPI Capital is the sole selling agent.

“BPI and the joint lead arrangers reserve the right to update the offer terms and the periods and dates prescribed above, as deemed appropriate and with due notice,” the bank said.

Investors could have a minimum investment amount of P1 million and additional increments of P100,000.

The Securities and Exchange Commission (SEC) has confirmed that the BPI RISE Bonds qualify as ASEAN Social 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 social impact,” BPI said.

Under the framework, loans to MSMEs may be considered social projects eligible to be financed or refinanced by green, social, and sustainability bonds, if such loans benefit underdeveloped regions, meet the qualifications set in the Manual of Regulations for Banks of the Bangko Sentral ng Pilipinas (BSP) and the Guidelines on the Issuance of Social Bonds under the ASEAN Social Bonds Standards of the SEC.

Loans to MSMEs, negatively impacted by natural calamities, with significant consequences on the people, public health, infrastructure, assets, or the economy as well as those that support and promote underserved and under banked segments of the population, are entitled to green or sustainable financing.

“Support for such MSMEs is seen to be critical in the post-crisis recovery of an economy battered by high unemployment, rising inflation, and disrupted supply chains,” BPI said earlier.

The 171-year-old bank  recognizes the significant contributions of MSMEs to the Philippine economy, as they account for 99.6 percent of businesses and 64.7 percent of total employment in the country.

In May last year, BPI established a new P100 billion bond and commercial paper program after using up its previous P100 billion borrowing program established in late 2019.

The listed bank last tapped the onshore debt market in January last year when it raised P27 billion via the issuance of two-year bonds due 2024.