Bank of the Philippine Islands (BPI) pegged the interest rate for its 1.5-year peso-denominated fixed-rate bonds at 6.2 percent per annum.
BPI said in a disclosure to the stock exchange Friday the bond offering, which has a principal amount of P5 billion and an option to upsize, would be issued under its sustainable, environmental and equitable development bonds (BPI SEED) program.
Applications to purchase the BPI SEED bonds will require a minimum investment of P500,000 and additional increments of P100,000.
The bank said it would use the net proceeds to finance or refinance new or existing eligible green and/or social projects as defined under BPI’s Sustainable Funding Framework1.
Offer period will begin on July 19, 2024 and end on Aug. 2, 2024.
BPI will issue and list the bonds with the Philippine Dealing and Exchange Corp. on Aug. 9, 2024.
“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.
BPI said the Securities and Exchange Commission confirmed that the planned bond offering qualify as ASEAN sustainability bonds.
Bonds carrying the 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 environmental and social impact.
The bank hired BPI Capital Corp. and Standard Chartered Bank as the joint lead arrangers and selling agents of the offer.
BPI and the joint lead arrangers have the right to amend the terms and the timing of the issuance with prior notice.
BPI reported a net income of P30.6 billion in the first half of the year, up 21.5 percent year-on-year on robust revenues.
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