BPI sets P5-B bond offering

MANILA  -The Ayala Group’s Bank of the Philippine Islands is preparing to launch a second bond offer under its P100-billion debt program to support its expansion.

BPI said in a stock exchange filing on Tuesday it planned to offer P5 billion in fixed-rate bonds due 2025. The offer can also be upsized in case of strong demand, the lender added.

The offer period will run from Oct. 17 though Nov. 3 this year.  BPI did not provided other details such as indicative interest rates for the upcoming bond sale.

“The net proceeds of the offer will be used for general corporate purposes, including funding source diversification,” BPI said.

The bonds will mature in 1.5 years and investors will need to buy a minimum of P1 million with additional increments set at P100,000.

BPI added the debt securities will be listed with the Philippine Dealing and Exchange Corp. on Nov. 10 this year.

It tapped BPI Capital Corp. and ING Bank N.V., Manila Branch as joint lead arrangers and selling agents for the offer.

BPI, the country’s third-biggest lender, also sealed a $300 million (P16 billion) debt deal with a consortium of lenders last July to beef up its balance sheet.

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, it said.

BPI is in the midst of completing the acquisition and merger with the smaller Robinsons Bank of the billionaire Gokongwei family.

Earlier this month, the Philippine Competition Commission cleared the takeover, saying the deal “will not likely result in substantial lessening of competition”.