Bank of the Philippine Islands said Thursday it will issue up to P100 billion worth of peso-denominated bank bonds as it diversifies funding sources to support sustainability strategy.
“Please be advised that on May 18, 2022, the board of directors of Bank of the Philippine Islands approved the issuance of up to P100 billion in peso-denominated bank bonds and commercial papers under a new peso bond and commercial paper program following full utilization of the bank’s bank bond program previously established in 2019,” BPI said in a disclosure to the stock exchange.
It said the actual issuance of bonds and commercial papers under the program would be subject to market conditions and determined by requirements of the bank’s business.
“The objective of the program is to diversify the bank’s funding sources and support, when possible, the Bank’s sustainability strategy,” it said.
The bank remains one of the largest in terms of assets. The Ayala-led bank is bullish on the growth prospects in 2022 amid the sustained strength of its core businesses and the reopening of the economy that could further boost consumer and business confidence.
BPI president and chief executive Teodoro Limcaoco, in a previous briefing, expressed confidence that the growth momentum from closing 2021 and the positive numbers in the first quarter this year could be carried over to the rest of the year.
The bank plans to spend a substantial amount for technology this year—around P13.5 billion—as digitalization becomes the trend in the banking industry.
BPI posted a net income of P8.0 billion in the first quarter, up 59.6 percent from a year ago, on higher net interest income, lower loss provisions and normalized tax expenses.
Revenues also went up 4.3 percent to P25.4 billion, driven 12.7-percent increase in net interest income to P19.0 billion.