MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is set to raise at least P5 billion through the issuance of ASEAN sustainable bonds to diversify its funding sources for green projects.
In a disclosure to the Philippine Stock Exchange, BPI said it plans to offer 1.5-year fixed-rate bonds from July 18 to Aug. 2 that would be listed on the Philippine Dealing & Exchange Corp. (PDEx) platform on Aug. 9.
“BPI intends to offer and issue P5 billion fixed-rate ASEAN sustainable bonds due 2026, with an option to upsize, as the third tranche of its P100 billion bond program approved by its board of directors on May 18, 2022,” the bank said.
Investors can avail of the debt securities with a minimum amount of P500,000 and in additional increments of P100,000.
“The net proceeds of the offer will be used for the financing or refinancing of new or existing eligible green and/or social projects as defined under, and consistent with, BPI’s Sustainable Funding Framework,” the bank said.
The bank has tapped BPI Capital Corp. and Standard Chartered Bank as joint lead arrangers and selling agents.
BPI first returned to the domestic debt market in January 2023, where it raised P20.3 billion through the issuance of peso fixed-rate bonds to boost its lending portfolio for micro, small, and medium enterprises (MSMEs).
The amount was more than four times the original issue size of P5 billion for the BPI Reinforcing Inclusive Support for MSMEs Bonds due 2024 with an interest rate of 5.75 percent per annum.
In November, BPI raised over P36 billion due 2025 with an interest rate of 6.4250 percent per annum, marking the second tranche of its P100 billion bond program.
The final issue size of the bonds was increased to over seven times the initial target of P5 billion to meet strong investor demand, BPI earlier said.