BPI cops P20.3B from bond sale amid demand surge
The Ayala Group’s Bank of the Philippine Islands (BPI) listed bonds worth P20.3 billion on Monday following an offer that was swamped by investors.
The 1.5-year bonds, which will pay an annual interest rate of 5.75 percent, was upsized over four times from the initial size of P5 billion amid “strong investor demand,” the banking giant said in a statement on Monday.
“We are grateful to our investors for their continued support and trust in BPI. We are also excited that the investments in the BPI ‘Rise bonds’ will help us empower micro, small, and medium enterprises (MSMEs) to reach their full potential and succeed in their ventures,” BPI president and CEO Jose Teodoro Limcaoco said.
The debt papers were dubbed “Rise bonds” because proceeds would be used to support small business loans.
“The net proceeds of BPl’s offering will be used to finance or refinance the business requirements of eligible micro, small and medium enterprises, consistent with BPl’s sustainable funding framework,” the lender said.
Global research firm Sustainalytics conducted the pre-issuance asset review of the bonds, it added.
Article continues after this advertisement“The success of the bond offering brings BPI one step closer to realizing our vision of building a better Philippines: one family, one community at a time,” Limcaoco said.
BPI Capital Corp. and ING Bank N.V., Manila Branch were hired as joint lead arrangers of the offer while BPI Capital acted as sole selling agent.
