AYALA-LED Bank of the Philippine Islands (BPI) on Friday listed on the Philippine Dealing and Exchange Corp. its 1.5-year peso-denominated fixed-rate Sustainable, Environment and Equitable Development (SEED) bonds due 2026, raising fresh funding amounting to P33.7 billion.
“I am honored to share that our bond offering has been met with remarkable enthusiasm from our investors, resulting in a final issue size of P33.7 billion. This is the biggest issuance we’ve had, and it’s oversubscribed by more than six times our initial target of P5 billion,” BPI treasurer Dino Gasmen said.
The principal amount for BPI’s SEED bonds was P5 billion, but the offer was oversubscribed by 6.7 times amid strong market demand. The bonds carry an interest rate of 6.2 percent per annum, to be paid quarterly.
The issuance is the third tranche of a P100-billion bond program approved by BPI’s board of directors in May 2022.
Net proceeds will be utilized to fund new or existing projects as defined under and consistent with BPI’s Sustainable Funding Framework.
“The issuance of these BPI SEED bonds allows us to further recognize our role in driving positive economic outcomes while advancing environmental and social progress. The net proceeds of this issuance will be directed toward the financing or refinancing of eligible green or social projects, fostering sustainable development that contributes to building a better and more resilient Philippines,” Gasmen said.
BPI Capital Corp. and Standard Chartered Bank acted as joint lead arrangers and selling agents of the offer.
On Friday, BPI shares rose 80 centavos, or 0.68 percent, to P118 apiece amid a 1.5-percent advance for the benchmark Philippine Stock Exchange index.
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