THE Bank of the Philippine Islands (BPI) will be issuing P5 billion worth of bonds to boost its capital-raising activities.
In a statement issued last Tuesday, BPI said it intends to offer and issue the Peso Fixed-Rate Bonds set to mature in 2025. The offer has an option to upsize, as the second tranche of its P100-billion bond program was approved by its Board of Directors on May 18, 2022.
The bonds will have a tenor of one and 1.5 years. The debt papers will be offered at a minimum investment amount of P1 million, and in additional increments of P100,000.
“The net proceeds of the offer will be used for general corporate purposes, including funding source diversification,” BPI said.
BPI said the offer period, which commenced last October 17, will end on November 3. The Bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on November 10.
BPI Capital Corp. (BPI Capital) and ING Bank NV-Manila Branch (ING) are the joint lead arrangers and selling agents of the offer.
The lender said it and the joint lead arrangers have the right to update the offer terms and the periods and dates prescribed above, as deemed appropriate and with due notice.
Last January, BPI issued the “Reinforcing Inclusive Support for MSMEs” bonds that bore an interest rate of 5.75 percent per annum and paid quarterly.
Applications to purchase these bonds will have a minimum investment amount of P1 million and additional increments of P100,000.
The bonds will allow investors the opportunity to support MSMEs, which the bank sees as significant contributors to the Philippine economy.