BPI signs $300-M loan facility with banking consortium

MANILA  -The Ayala Group’s Bank of the Philippine Islands (BPI) sealed a $300-million (P16.4 billion) debt deal with a consortium of 21 lenders as it further strengthens its balance sheet.

In a stock exchange filing on Monday, BPI announced the signing of the three-year syndicated loan facility, which was upsized by 50 percent to accommodate strong demand. Overall orders were two times the original amount of $200 million.

Proceeds from the loan will be used to partly refinance its existing $600 million bonds due September 2023, as well as for general corporate purposes.

“BPI is extremely pleased with the strong level of support that this transaction has received during syndication,” BPI chief finance officer and chief sustainability officer Eric Roberto M. Luchangco said in the statement.

The lender said the loan facility was signed with the mandated lead arrangers, bookrunners, and underwriters The Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank.

It was supported by 21 lenders, including the two deal arrangers. HSBC acted as facility agent.

“We are highly appreciative of the seamless delivery that [HSBC and Standard Chartered] have provided in assisting BPI achieve this outcome and further extend our thanks to the diverse banking group who have joined this very important transaction for our institution,” Luchangco said.