BPI looking to raise P3B from COVID response bonds

The Bank of the Philippine Islands (BPI) on Monday launched its COVID Action Response Bonds (CARE Bonds) where the company seeks to raise as much as P3 billion,  said to be the country's first peso-denominated bonds issued as a direct response to the coronavirus pandemic.

In a statement on Monday, BPI said the offering will run from June 22 until July 7, with the listing date of August 7, 2020.

The bonds come with a tenor of 1.75 years and an interest rate of 3.05% per annum, paid quarterly in arrears. The offer has a minimum investment amount set at P1 million, with additional increments of P100,000 thereafter.

Proceeds of the offer will be used to finance and refinance eligible micro, small, and medium enterprises under BPI's Sustainable Funding Framework.

"MSMEs have been significantly affected by the global pandemic and BPI recognizes that these enterprises, which account for a significant percentage of the country’s employment, are crucial to the growth and recovery of our economy," the lender said.

"Supporting these businesses will also help create a more inclusive society where all Filipinos benefit from the country’s economic gains," it added.

Micro enterprises are defined by the Department of Trade and Industry as those with total assets worth less than P50,000; cottage enterprises with assets worth P50,001 to P500,000; small with P500,001 to P5 million; and medium from over P5 million to P20 million.

According to BPI, the offer has secured qualification from the Securities and Exchange Commission as Social Bonds under the ASEAN Social Bonds Standards in the Philippines.

BPI Capital Corp. and The Hongkong and Shanghai Banking Corp. Ltd. (HSBC) has been tapped as the joint lead arrangers of the CARE Bonds.

Meanwhile, BPI Capital is the sole selling agent with HSBC as participating selling agent.

BPI ended 2019 as the fourth-largest bank in the Philippines in terms of asset base with P1.912 trillion.—AOL, GMA News