BPI rolls out P5-B bond sale

The Ayala Group’s Bank of the Philippine Islands (BPI) kicks off a P5-billion bond sale today, Jan. 9, to support loans to small and medium-sized enterprises.

Dubbed “BPI Rise Bonds,” the notes bear an annual interest rate of 5.75 percent, which will be paid quarterly.

The 1.5-year fixed rate peso bonds could be upsized further in case of excess demand above P5 billion, the lender said.

The offer period is until Jan. 13 while the bonds will be listed on Jan. 30 this year, according to the bank.

“BPI is keen to use the offer of BPI Rise Bonds as an opportunity to support MSMEs (micro, small and medium enterprises), which the bank sees as significant contributors to the Philippine economy,” the lender said in a statement.

It added the Securities and Exchange Commission earlier confirmed the bonds were qualified as Asean Social Bonds.

“Bonds carrying this 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 social impact,” BPI said.

Interested investors need to purchase a minimum amount of P1 million, with additional increments set at P100,000.

BPI will use the net proceeds of the offer to finance or refinance the business requirements of eligible MSMEs in accordance with its sustainable funding framework.

BPI Capital Corp. (BPI Capital) and ING Bank N.V., Manila Branch were tapped as joint lead arrangers of the offer.

—Miguel R. Camus INQ