MANILA - The Bank of the Philippine Islands (BPI) said Friday its maiden COVID Action Response Bonds raised P21.5 billion, exceeding target by over 7 times.
The CARE Bonds initially aimed to raise P3 billion, BPI said in a disclosure to the stock exchange.
The bonds have a tenure of 1.75 years and an interest rate of 3.05 percent annually, paid quarterly, it said.
“We issued the CARE Bonds to address the financing needs of MSMEs, as they work to overcome the challenges brought about by COVID-19. The amount raised adds to our capability to provide financing to this very important segment of the economy,” said BPI President and CEO Cezar P. Consing.
Proceeds of the CARE Bonds will finance and refinance eligible micro, small and medium enterprises, hardest hit by the coronavirus pandemic, BPI said.
The Securities and Exchange Commission earlier said it backed the issuance of COVID-19 response bonds to support efforts to contain and manage the socioeconomic impacts of the pandemic.