BPI looks to raise P5 billion from sustainability bond offer – BusinessWorld Online
BANK of the Philippine Islands (BPI) is looking to raise at least P5 billion from an offering of fixed-rate sustainability bonds in May.
The listed bank plans to offer and issue P5 billion in 1.5-year BPI Supporting Inclusion, Nature, and Growth or SINAG Bonds, it said in a disclosure to the stock exchange on Monday.
The offer is scheduled to start on May 20 and end on May 30, unless adjusted by the bank. The issue is expected to be issued and listed on the Philippine Dealing and Exchange Corp. on June 10.
“The net proceeds of the offer will be used for the financing or refinancing of eligible projects under BPI’s Sustainable Funding Framework consistent with the ASEAN Sustainability Bond Standards,” BPI said.
“The BPI SINAG Bonds… will carry the “ASEAN Sustainability” label, as affirmed by the Securities and Exchange Commission on March 17.”
The issuance will make up the first tranche of BPI P200-billion bond and commercial paper program approved by its board of directors in October last year.
The notes will be sold at a minimum investment amount of P500,000 and in increments of P100,000 thereafter.
The bank has mandated BPI Capital Corp. and Standard Chartered Bank as the joint lead arrangers and selling agents for the offer.
BPI last tapped the domestic bond market in August 2024, raising P33.7 billion from its offering of 1.5-year Sustainable, Environmental, and Equitable Development Bonds, which marked its first foray into the sustainable bond space.
Proceeds from the issuance were set to be used to finance or refinance new or existing eligible projects under BPI’s Sustainable Funding Framework.
BPI’s net income increased by 9% year on year to P16.6 billion in the first quarter.
Its shares closed at P133.30 apiece on Monday, down by P1 or 0.74%. — A.M.C. Sy
