BANK of the Philippine Islands (BPI) has raised P50 billion from an offering of its Supporting Individuals Grow, Lead and Achieve (Sigla) bonds that were listed on Philippine Dealing & Exchange Corp. on Friday.
The latest offering, said to be the bank’s largest peso bond issuance to date, represented the second tranche of a P200-billion bond and commercial paper program approved by its board of directors last October.
Structured with a two-year tenor, the Sigla bonds carry an interest rate of 5.4050 percent per year, payable quarterly, and were issued under the Asean Social Bond label as affirmed by the Securities and Exchange Commission last December.
BPI noted that the issuance was 10 times the base size of P5 billion, reflecting strong investor demand.
It said proceeds would be allocated to finance or refinance eligible social projects in line with the bank’s sustainable funding framework and consistent with the Asean social bond standards.
“This issuance represents a significant milestone in our commitment to promoting inclusive growth and empowering underserved sectors across the Philippines,” said Dino Gasmen, BPI treasurer and head of global markets.
He added that the bank was grateful for the trust from the investing public and looked forward to channeling the funds toward initiatives that generate positive social impact.
The Sigla bonds form part of BPI’s broader environmental, social and governance strategy, directing capital to projects that promote inclusive and equitable development.
The issuance integrates sustainability principles across its business lines, from responsible lending to sustainable investment products, BPI said.
“Through the BPI Sigla bonds, BPI continues to reinforce its leadership in sustainable finance,” Gasmen said.
“We remain firmly committed to developing innovative financial instruments that support the country’s sustainable development goals while delivering long-term value to our investors.”
BPI Capital Corp. and ING Bank N.V., Manila Branch acted as joint lead arrangers and selling agents for the offer.
The Ayala-led bank noted that the Sigla Bonds were exempt from registration under the Securities Regulation Code and had not been registered with the Securities and Exchange Commission. The bonds are also not deposit instruments, it added.
BPI shares slipped P0.10, or 0.09 percent, to close at P117.10 each on Friday amid a 1.34-percent drop for the benchmark Philippine Stock Exchange index.
