BPI taps foreign debt market to keep cash flowing

One of the country’s oldest banks, Bank of the Philippine Islands (BPI), is returning to the offshore debt market with an updated medium-term note (MTN) program worth up to $2 billion or its equivalent in other currencies.

In a disclosure to the Philippine Stock Exchange on Thursday, BPI said it had appointed its investment house BPI Capital as sole global coordinator and lead arranger for the program.

With the MTN program, an issuer like BPI can generate constant cash flows from debt issuance, typically with tenors, or maturity periods, of five to 10 years. This will allow this issuer to tailor its borrowing to meet its financing needs./TSB