AYALA-LED Bank of the Philippine Islands (BPI) started an offering of 1.5-year peso-denominated fixed-rate bonds due in 2026, with a principal amount of P5 billion and an option to upsize.
BPI’s Sustainable, Environmental and Equitable Development (SEED) bonds will be issued at par value and carry an interest rate of 6.20 percent per year, to be paid quarterly.
“Applications to purchase the BPI SEED Bonds will require a minimum investment amount of P500,000 and additional increments of P100,000,” BPI said in a disclosure.
Proceeds will be used to fund the bank’s new or existing eligible green and/or social projects defined under its sustainable funding framework.
“In no case shall the unallocated proceeds from the BPI SEED Bonds be used to repay existing borrowings under general credit facilities of the Bank,” the bank said.
The offer period will end on August 2, and the bonds will be issued and listed on the Philippine Dealing and Exchange Corp. on August 9.
“BPI is committed to creating value not only for its businesses, but also for its stakeholders, the environment and the communities in which it operates. It strives to have sustainability at the core of its corporate strategies, ultimately balancing its growth aspirations with its environmental and social responsibility,” the bank said.
The bond offer will open opportunities to promote projects that will contribute to the attainment of the United Nations’ Sustainable Development Goals, it added.
“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,” BPI said.
On Thursday, the Securities and Exchange Commission confirmed that the bonds qualified as Asean sustainability bonds.
BPI Capital Corp. and Standard Chartered Bank are serving as the bond’s joint lead arrangers and selling agents.
“BPI and the joint lead arrangers and selling agents reserve the right to update the offer terms and the periods and dates prescribed above, as deemed appropriate and with due notice,” BPI said.
BPI shares rose P1.80, or 1.43 percent, to P127.80 apiece on Friday amid a 1.29-percent rise for the benchmark Philippine Stock Exchange index.
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