Philippine bank first to issue green bonds in Swiss francs, raises P5B

One of the country’s oldest banks has raised an equivalent of about P5.28 billion from a pioneering Swiss franc-denominated green bond issuance that gives it two-year interest-free money.

This is the first ever public Swiss franc-denominated benchmark bond (CHF 100 million) carved out of the Philippines, the first ASEAN (Association of Southeast Asian Nation) green bond benchmark for Bank of the Philippine Islands (BPI) the first-ever rated Philippine green bond in the international market and the first negative-yielding bonds to be issued out of the Philippines in the international capital market.

BPI priced the CHF 100-million ASEAN green bond at 100.040 percent, with a re-offer yield of -0.020 percent on Thursday.  These bonds carry zero annual coupon and will mature in 2021.

“It’s mainly for Swiss investors where the yield is negative.  Investors pay the issuer for giving their money,” said BPI chief financial officer Maria Theresa Marcial./tsb