BPI raises P33.7B from SEED bonds, exceeds P5-B offering

Ayala-led Bank of the Philippine Islands (BPI) on Friday announced it has raised over P30 billion from its sale of Sustainable, Environmental, and Equitable Development (SEED) bonds, exceeding its initial P5-billion issue size amid strong demand from investors.

In a disclosure to the Philippine Stock Exchange, BPI said it raised P33.7 billion following the issuance’s two-week offer period from July 19, 2024 to August 2, 2024.

The bank listed the SEED bonds, due 2026, on the Philippine Dealing and Exchange Corp.

The bonds form part of the Ayala-led lender’s P100-billion bond program, approved on May 18, 2022.

BPI said its SEED Bonds marks the bank’s “largest thematic bond issuance to date.”

The bank added that the offering is also its first foray in the sustainable bond format.

The lender said that it increased the P5-billion initial size of the bonds offer by 6.7% “in the wake of robust demand for the BPI Seed Bonds across institutional, high net worth, and retail clients.”

BPI said it will use the net proceeds of the offer to finance or refinance new or existing eligible green and/or social projects “as defined under, and consistent with, BPI’s Sustainable Funding Framework.”

“BPI is committed to integrating sustainability in how we do business. The net proceeds from BPI SEED Bonds will enable us to foster sustainable development that will contribute to building a better, more resilient Philippines,” said BPI treasurer Dino Gasmen.

The BPI SEED bonds, now tradable on the Philippine Dealing and Exchange Corp., have a term of 1.5 years and bear an interest rate of 6.2000% per annum, payable quarterly.

BPI Capital Corporation and Standard Chartered Bank were tapped as the joint lead arrangers and selling agents of the offer. — Ted Cordero/RSJ, GMA Integrated News