The country’s largest thrift bank BPI Family Savings Bank (BSFB) has debuted into the local retail bond market, offering an interest rate of 4.3 percent per annum for a 2.5-year tenor.
BSFB, a unit of Ayala-led Bank of the Philippine Islands, is raising at least P2 billion from this offering but it is keeping an option to upsize.
The maiden issue will be the first tranche of its P35-billion bond program, which was approved by its board of directors last October 31.
Proceeds from these BFSB bonds will support its drive to “diversify its investor base, fund its asset expansion, particularly loan growth, digitalization initiatives, and general corporate purposes,” parent bank BPI said in a disclosure to the Philippine Stock Exchange.
Interest rate on the BSFB bonds will be paid quarterly. The minimum investment amount is set at P100,000 with increments of P50,000 thereafter.
The bonds will be offered to the public starting Nov. 25 through Dec. 6 this year. BFSB, however, reserves the right to adjust the timing of the offer period.
BPI Capital Corp. is the sole selling agent, while The Hongkong and Shanghai Banking Corporation Ltd. is the sole arranger and participating selling agent.