BPI looking to raise P5B from offering of bonds

BPI BW - BPI looking to raise P5B from offering of bondsBANK OF THE Philippine Islands started offering the bonds on Monday. — BW FILE PHOTO

BANK OF THE Philippine Islands (BPI) is targeting to raise P5 billion from the issue of peso fixed-rate bonds, which will mark its second issuance for the year.

In a filing with the local bourse on Monday, BPI said it has the option to upsize the bond issue.

The bonds will mature in one and a half years and carry an interest 4.05% per annum to be paid quarterly.

“This offering is aligned with our strategy to grow and diversify our funding sources,” BPI Treasurer Dino R. Gasmen said in the statement. “We will continue to explore similar opportunities to further increase our capacity to deliver relevant financial services to more Filipinos.”

BPI started offering the bonds yesterday, with the public offer period set to run until March 17. The listing date is on March 27. The bank, however, said it may adjust this schedule as it sees fit.

Minimum investment for the bonds is at P1 million and in additional increments of P100,000 thereafter.

The joint lead arrangers for the offering are BPI Capital Corp. and ING Bank N.V.-Manila Branch. BPI Capital is likewise the sole selling agent for the bonds while ING is a participating selling agent.

In January, BPI sold P15.3 billion worth of peso-denominated bonds, oversubscribed by more than five times its initial offer of P3 billion.

The bonds have a tenor of two years and carry an interest rate of 4.2423% per annum to be paid quarterly.

The Ayala-led lender’s net income climbed by 24% to P28.8 billion in 2019, backed by bigger revenues.

For the fourth quarter alone, the bank’s net income grew by 11.6% year on year to P6.77 billion.

BPI’s shares ended trading at P75.50 apiece on Monday, up by P1.40 or 1.89% from its previous close. — L.W.T. Noble

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