Bank of the Philippine Islands (BPI), the banking arm of the Ayala conglomerate, raised ₱20.3 billion from a fixed rate bond offering that was more than four times oversubscribed.
The bond issuance was met with strong demand from investors, resulting in oversubscription of four times its base amount. The bonds are now tradeable on the Philippine Dealing & Exchange Corp.
The BPI Reinforcing Inclusive Support for MSMEs Bonds, which formed part of the bank’s P100 billion bond program, have a term of 1.5 years and carry an interest rate of 5.75 percent per annum, payable quarterly.
“We are grateful to our investors for their continued support and trust in BPI. We are also excited that the investments in the BPI RISE Bonds will help us empower micro, small, and medium enterprises to reach their full potential and succeed in their ventures. The success of the bond offering brings BPI one step closer to realizing our vision of building a better Philippines — one family, one community at a time,” said BPI president and CEO Jose Teodoro K. Limcaoco.
BPI will use net proceeds from the offer to finance or refinance the business requirements of eligible micro, small and medium enterprises (MSMEs), consistent with BPI’s Sustainable Funding Framework.