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BPI lists peso bonds worth P15.3b after high demand

Ayala-led Bank of the Philippine Islands, the third-largest lender in terms of assets, listed on Friday its peso bonds worth P15.3 billion.

BPI said in a statement the bond offering exceeded the original target of P3 billion by five times. The fixed rate bonds have an interest rate of 4.2423 percent per annum payable quarterly, with a tenor of two years.

The bank plans to use proceeds from the bank to offer better financial services to Filipinos.

Dino Gasmen, BPI treasurer, attributed the successful bond offering to the trust and support of both retail and institutional investors to BPI.

“Our bonds offer an attractive return to investors. The funds raised puts us in a better position to provide financial services to more clients—individuals, small and medium businesses, and big corporations to fund a housing project, a new car, or their businesses,” he said.

The bonds, whose availability was announced last Jan. 13, are now tradable on Philippine Dealing & Exchange Corp. The issuance is BPI’s second peso bond transaction, following its landmark P25-billion bond sale in 2018.

BPI Capital Corp. and the local branch of Standard Chartered Bank served as the joint lead arrangers of the bonds. BPI Capital was sole selling agent, while SCB was participating selling agent.

BPI remains one of the biggest universal and commercial banks in the country in terms of assets, loans, deposits and coverage.

BPI booked a 29.5-percent increase in net income to P22.03 billion in the first nine months of 2019 from P17.01 billion a year ago after a strong performance in the third quarter.

Revenues surged 245 percent to P71 billion from January to September compared to P56.89 billion in the same period a year ago.

The bank’s loan book rose 8 percent to P1.37 trillion in the first nine months from P1.27 trillion a year ago due to higher consumer and corporate loans.

BPI’s deposit base rose 5 percent to P1.62 trillion from P1.54 trillion, translating into a CASA deposit ratio of 69.1 percent and a loan-to-deposit ratio of 84.7 percent.

Topics: Bank of the Philippine Islands , BPI , peso bonds
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