Contributed Photo /BPI
MANILA, Philippines — Bank of the Philippine Islands (BPI) will tap the offshore debt market this year as the monetary policy easing cycle attracts more investors toward fixed-income securities.
The banking arm of the Zobel family said in a regulatory filing on Wednesday it was looking at issuing five-year or 10-year fixed-rate debt, or five-year floating rate notes.
Compared to fixed-rate securities, the price of floating rate notes depends on a benchmark interest rate, but issuers have the option to add a few more basis points.
BPI Capital Corp. was tapped as the sole global coordinator, while BofA Securities, HSBC, JP Morgan and UBS will be joint bookrunners.
The upcoming issuance is part of BPI’s $3-billion medium-term note program. Proceeds will be used to repay existing debt and for general corporate purposes.
