BPI raises $300M from ASEAN Green Bond issuance

Bank of the Philippine Islands (BPI) has raised $300 million from its ASEAN Green Bond issuance which was over four times oversubscribed.

In a regulatory filing submitted by assistant corporate secretary Josenia Jessica Nemeno, the bank said the green bonds were issued via a drawdown from its $2-billion medium-term note program.

The bonds were priced at 99.641%, with a re-offer yield of 2.577%. They will carry a coupon rate of 2.500% per annum payable semiannually. The final maturity date is September 10, 2024.

“The offering was over four times oversubscribed, with the order book allocated predominantly to Asia, and the rest to Europe,” the filing read.

“By investor type, more than half of the offering was allocated to asset managers and fund managers, around one-third to banks, financial institutions, and private banks," it added.

The transaction is expected to be settled next Tuesday, September 10, marking the first USD-denominated ASEAN Green Bond issued by a Philippine bank.

"The net proceeds from the bonds will be used for the financing or re-financing, in whole or in part, of ‘green’ eligible projects, as further described in BPI’s Green Finance Framework,” the lender said.

BPI tapped BPI Capital as sole global coordinator and along with Bank of America Merrill Lynch, Citigroup, Credit Suisse, Mizuho Securities, and UBS as joint lead manager and bookrunner.

According to its Green Finance Framework, BPI has already spent P125.8 billion for sustainable energy and climate resilience projects from 2008 to 2018. —Jon Viktor Cabuenas/VDS, GMA News