BPI raising P3B from COVID19 response bonds

BPI’s press briefing on April 23, 2020 in virtual format

Ayala-led Bank of the Philippine Islands (BPI) is raising at least P3 billion from a pioneering bond issue dedicated to coronavirus (COVID-19) response efforts.

The COVID Action Response or “CARE” bonds were priced to yield 3.05 percent per annum for a tenor of 1.75 years, BPI disclosed to the Philippine Stock Exchange on Monday.

This is the country’s first peso-denominated bonds to be issued as a direct response to the COVID-19 pandemic.

The CARE Bonds will be issued as the third tranche of BPI’s P100-billion bond program.

The offering will run from June 22 until July 17 this year. The issuance and listing date of the CARE Bonds will be on August 7, 2020.

Proceeds will be used to finance and refinance eligible micro, small and medium enterprises (MSMEs) under the bank’s Sustainable Funding Framework.

The SEC has confirmed that the CARE Bonds qualify as social bonds under the Association of Southeast Asian Nations (ASEAN) social bonds standards in the Philippines.