BPI issues $400M in fresh bonds

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) has rolled out its $400-million bond sale after pricing the five-year offshore debt offer, marking its first dollar-denominated bond issuance since 2019.

In a stock exchange filing on Wednesday, BPI said the bonds were priced at a US Treasury spread of T+105 basis points with a coupon of 5.25 percent a year.

“The notes were issued under BPI’s $3-billion medium term notes program, and the net proceeds will be used for refinancing and general corporate purposes,” the bank added.

The transaction is expected to be settled next week, on March 26.

READ: BPI posted record profit in 2023

According to BPI, 81 percent of the Regulation S notes were distributed in Asia, while the rest went to Europe, the Middle East and Africa.

By investor type, 51 percent went to fund managers, 29 percent to banks, 17 percent to private banks and financial institutions, and 3 percent to insurance, BPI said.

Refinancing

Investment banking arm BPI Capital was tapped as the sole global coordinator, while JP Morgan Securities PLC, Mizuho Securities Asia Ltd., Standard Chartered Bank and UBS AG Singapore Branch were the joint lead managers.

In 2019, BPI issued a $300-million Asean (Association of Southeast Asian Nations) green bond, proceeds of which were earmarked for financing and/or refinancing of “green” eligible projects.

The Zobel family-led bank saw its net income in 2023 surge by 30.5 percent to P51.7 billion due to higher interest earnings.

Revenues, meanwhile, jumped by 16.7 percent to P138.3 billion. —Meg J. Adonis