Bank of the Philippine Islands started on Tuesday the offer period for its 1.5- year peso fixed-rate bonds due 2025, with an aggregate principal amount of P5 billion with option to upsize.
BPI said in a disclosure to the stock exchange the bonds, representing the second tranche under its P100 billion bond program, will be issued at par value, bearing an interest rate of 6.425 percent per annum, and will be paid quarterly.
Applications to purchase the bonds require a minimum investment amount of P1 million and in additional increments of P100,000.
“BPI will use the net proceeds of the offer for general corporate purposes, and the offer will contribute to BPI’s funding source diversification,” it said.
The offer period will end on Nov. 3, 2023.
The bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on Nov. 13, 2023.
BPI Capital Corp. and ING Bank N.V., Manila Branch are the joint lead arrangers and selling agents of the offer.
BPI and the joint lead arrangers reserve the right to update the offer terms, the periods, and the dates prescribed, as deemed appropriate and with due notice.
BPI remains one of the biggest banks in terms of assets as of the first half of 2023. Its net profit for the period jumped 23 percent year-on-year to P25.1 billion, with an equity return of 15.5 percent.
BPI attributed the growth to average asset base expansion, margin growth and lower provisions.
Total revenue in the first half rose 13.8 percent to P65.6 billion, driven by a 27.4-percent increase in net interest income.