BANK of the Philippine Islands (BPI) said its latest social bond issuance reflected a broader focus on sustainable development, financial inclusion and innovative regional expansion.
At the ceremonial listing of the bank’s P50-billion Supporting Individuals Grow, Lead, and Achieve (Sigal) bonds at the Philippine Dealing & Exchange Corp. on Friday, executives reiterated that the rationale for the offering went beyond raising fresh capital.
It was the bank’s largest peso-denominated social bond issue to date and was met with strong investor demand, with the final volume sold at 10 times the base size of P5 billion.
The Sigla bonds represent the second tranche of BPI’s P200 billion bond and commercial paper program approved in late 2024.
Dino Gasmen, BPI treasurer and head of global markets, said the bonds aligned with recognized environmental, social and governance (ESG) standards and that proceeds would be used exclusively for social projects that deliver measurable impact.
As for future bond issuances, Gasmen said the bank would be aiming for a more flexible and frequent approach to capital market engagement.
“For now, we’re looking at a more opportunistic issuance. Issuance is timed so that we get as much volume,” he added, signaling efforts to build a broader issuance curve for investors.
Bank executives also viewed the strong market response to the Sigla bonds as an affirmation of BPI’s credibility.
“That’s really how they view BPI as an institution. That it’s strong, creditworthy, fulfilling its promises to its constituents,” Gasmen said.
BPI President and CEO Jose Teodoro Limcaoco, meanwhile, highlighted the bank’s efforts toward financial inclusion, combining digital platforms with physical outreach to serve communities that traditional banking often overlooks.
“While other banks would say that it is difficult to reach remote areas ... BPI has been doing this for almost a decade now ... we use it to touch base, to reach what we call the underbanked and underserved sectors,” he said.
This strategy extends to real-world outreach, such as lending to micro-entrepreneurs who may otherwise turn to high-cost informal lenders, Limcaoco added.
Commenting on macroeconomic conditions, he acknowledged challenges in consumer sentiment but expressed confidence in a rebound in the coming months.
The bank also highlighted its international expansion, particularly through BPI Wealth Singapore, with Limcaoco sharing that the goal was to democratize wealth management and make investment products accessible to a broader market and not just to high-net-worth clients.
BPI shares closed at P117.10 each on Friday, down 10 centavos or 0.09 percent.
