Ayala-led Bank of the Philippine Islands has kicked off its funding program for this year with an offering of at least P3 billion worth of bonds.
The bonds will have a tenor of two years and an interest rate of 4.2423 percent a year, the bank said in a press statement on Tuesday.
The offer period will be from Jan. 13 to 17, 2020, and the issue and listing date will be on Jan. 24, 2020.
Proceeds from this bond offering will support the bank’s expansion plans and diversify funding sources, the disclosure added.
“We are confident that investors will continue to support BPI’s fundraising initiatives, as backed by the bank’s robust credit metrics,” BPI treasurer Dino Gasmen said.
BPI reserves the option to increase the offering as well as the right to adjust the timing of the offer period as deemed appropriate.
BPI Capital Corp. and Standard Chartered Bank Philippine branch are the joint lead arrangers of the bonds.
BPI Capital Corp. is the sole selling agent, while Standard Chartered Bank Philippines is a participating selling agent.More banks are tapping the local bond market, mainly to reduce reliance on deposits and gain more access
to long-term funding to allow them to fund more projects, including infrastructure assets. —Doris Dumlao-Abadilla INQ