BANK of the Philippine Islands (BPI) on Tuesday priced and began its offering of 1.5-year fixed-rate sustainability bonds, from which it aims to raise at least P5 billion.
The 1.5-year peso denominated fixed-rate BPI Supporting Inclusion, Nature, and Growth (SINAG) bonds carry an interest rate of 5.85% per annum to be paid quarterly, the listed bank said in a disclosure to the stock exchange on Tuesday.
BPI wants to raise at least P5 billion from the bond offer with an option to upsize. The bonds are being sold at a minimum investment amount of P500,000 and in increments of P100,000 thereafter.
The SINAG bonds will make up the first tranche of the bank’s P200-billion bond and commercial paper program approved by its board of directors in October last year.
“BPI will use the net proceeds of the offer to finance or refinance eligible projects under BPI’s Sustainable Funding Framework consistent with the ASEAN Sustainability Bond Standards,” it said.
“BPI is committed to creating value for its stakeholders, the environment, and the communities in which it operates. It strives to have sustainability at the core of its corporate strategies, ultimately achieving its business growth aspirations alongside its environmental and social responsibility.”
The bond offer period, which began on Tuesday, is set to run until May 30, unless adjusted by the bank. The papers are expected to be issued and listed on the Philippine Dealing and Exchange Corp. on June 10.
The bank has tapped BPI Capital Corp. and Standard Chartered Bank as the joint lead arrangers and selling agents for the offer.
The Securities and Exchange Commission on March 17 confirmed that the BPI SINAG Bonds qualify as ASEAN Sustainability Bonds. “Bonds carrying this classification have been independently verified to have systems in place to ensure that proceeds raised will be directed toward projects with environmental and social benefits. This gives bondholders confidence that their investments will have clear and measurable sustainable impacts,” the bank said.
BPI last tapped the domestic bond market in August last year, raising P33.7 billion from its offering of 1.5-year Sustainable, Environmental, and Equitable Development or SEED bonds, which marked its first foray into the sustainable bond space.
The listed bank’s net income increased by 9% year on year to P16.6 billion in the first quarter.
BPI’s shares dropped by P4.80 or 3.53% to close at P131.10 apiece on Tuesday. — Aaron Michael C. Sy
