BPI to raise P5B from bond offer to support MSMEs

Ayala-led Bank of the Philippine Islands (BPI) on Wednesday announced its plan to raise P5 billion through offering fixed-rate bonds to the investing public and use its proceeds to boost support to the micro, small, and medium enterprises (MSMEs) sector.

In a disclosure to the Philippine Stock Exchange, BPI said it intends to issue up to P5 billion of 1.5-year Peso Fixed-Rate Bonds due in 2024.

The issuance called BPI Reinforcing Inclusive Support for MSMEs Bonds (BPI RISE Bonds) is under the bank’s P100-billion bond program approved by its board of directors in May.

BPI said the P5-billion issue size has an option to upsize, subject to investor demand.

The bank said it intends to use the net proceeds of the offering to finance or refinance the business requirements of eligible MSMEs, consistent with its Sustainable Funding Framework.

BPI said it recognizes the significant contributions of MSMEs to the Philippine economy, as they account for 99.6% of businesses and 64.7% of total employment in the country.

The bank said its RISE Bonds will have a tenor of one and one-half years, offered at a minimum investment amount of P1,000,000 with additional increments of P100,000.

The offer period will be from January 9 to 20, 2023, and the issue and listing date will be on January 30, 2023.

BPI Capital Corporation (BPI Capital) and ING Bank N.V., Manila Branch (ING) are the joint lead arrangers of the offer. BPI Capital is the sole selling agent. —KBK, GMA Integrated News