The Ayala-led Bank of the Philippine Islands (BPI) is preparing to issue P5 billion ($100 million) of fixed-rate, 1.5-year bonds on Oct. 17, 2023, as part of the second tranche of its P100 billion ($2 billion) bond program. The issuance is intended to finance operations and other general corporate purposes, according to a statement released on Tuesday.
The bank disclosed the upcoming bond offer to the Philippine Stock Exchange on Monday, noting that it forms part of a bond program approved by its Board of Directors on May 18, 2022. The bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on Nov. 10, 2023, and will be available for purchase until Nov. 3, 2023.
In addition to the base issuance, BPI has included an upsize option dependent on market demand. The bonds will be offered at a minimum investment amount of P1 million ($20,000), with additional increments of P100,000 ($2,000).
Previously, BPI issued fixed-rate, 1.5-year bonds worth P20.3 billion ($406 million), known as “BPI RISE Bonds” or MSMEs Bonds. These bonds, due in 2024, were aimed at financing micro, small and medium enterprises (MSMEs) under BPI’s Sustainable Funding Framework.
BPI’s financial performance in the first half of this year showed a net income growth of 23 percent to P25.1 billion ($502 million), up from P20.4 billion ($408 million) during the same period in 2022. The bank reported revenues of P65.6 billion ($1.3 billion), reflecting a 13.8% increase from the previous year’s P57.6 billion ($1.15 billion). As of end-June, BPI’s total assets stood at P2.7 trillion ($54 billion), marking an 8.9% year-on-year increase.
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