BPI Launches $400 Million Bond Offering to Boost Capital

The Bank of the Philippine Islands (BPI), an institution under the Ayala Corporation, has announced the successful launch of a $400 million bond offering, its first venture into the dollar bond market since 2019. The five-year bonds were priced with a 5.25 percent annual coupon rate and a spread of 105 basis points over the US Treasury rate.

BPI’s recent stock exchange disclosure revealed that this issuance is part of its $3-billion medium-term notes program, with the generated funds earmarked for refinancing and broad corporate expenditures. The settlement of this financial venture is anticipated by March 26.

The majority of the bonds, specifically 81 percent, were allocated to investors in Asia, with the remaining shares distributed across Europe, the Middle East, and Africa. The investment saw diverse interest, with fund managers acquiring 51 percent, banks 29 percent, and private banks and financial institutions 17 percent. Insurance companies made up the remaining 3 percent of the bond distribution.

BPI Capital served as the principal coordinator for this transaction, collaborating with JP Morgan Securities PLC, Mizuho Securities Asia Ltd., Standard Chartered Bank, and UBS AG Singapore Branch as joint lead managers.

This move comes after BPI’s issuance of a $300 million ASEAN green bond in 2019, aimed at funding environmentally sustainable projects. BPI has demonstrated significant financial growth, reporting a 30.5 percent increase in net income to P51.7 billion in 2023, driven by elevated interest earnings, with total revenues rising by 16.7 percent to P138.3 billion.