BPI lists its biggest bond issue ever | ABS-CBN
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BPI lists its biggest bond issue ever
BPI lists its biggest bond issue ever
Jekki Pascual,
ABS-CBN News
Published Nov 13, 2023 04:05 PM PHT
MANILA - Bank of the Philippine Islands (BPI) on Monday said it has listed its biggest bond issuance.
MANILA - Bank of the Philippine Islands (BPI) on Monday said it has listed its biggest bond issuance.
It listed P36.6 billion of fixed-rate bonds due on May 2025 on the Philippine Dealing & Exchange Corp. (PDEx).
It listed P36.6 billion of fixed-rate bonds due on May 2025 on the Philippine Dealing & Exchange Corp. (PDEx).
At the listing ceremony in Makati, PDEx President and CEO Antonino Nakpil welcomed what he described as the largest issue of the year, which together with BPI’s earlier P20 billion bond issuance is already a third of this year’s total listing. He added that there are now 5,935 “happy bondholders”.
At the listing ceremony in Makati, PDEx President and CEO Antonino Nakpil welcomed what he described as the largest issue of the year, which together with BPI’s earlier P20 billion bond issuance is already a third of this year’s total listing. He added that there are now 5,935 “happy bondholders”.
“Funding is still flowing to borrowers so they meet their debt capital requirements. Investors have remained thirsty for fixed income instruments for both corporate securities and government securities staying buoyant as well,” said Napil.
“Funding is still flowing to borrowers so they meet their debt capital requirements. Investors have remained thirsty for fixed income instruments for both corporate securities and government securities staying buoyant as well,” said Napil.
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BPI Treasurer and Head of Global Markets Dino Gasmen said they were surprised by the huge demand for this 1.5-year issuance. The original size was just P5 billion and the result was 7 times oversubscribed. P1 million was the minimum investment with increments of P100,000. The interest rate is 6.4250 p.a. and the maturity date is May 13, 2025.
BPI Treasurer and Head of Global Markets Dino Gasmen said they were surprised by the huge demand for this 1.5-year issuance. The original size was just P5 billion and the result was 7 times oversubscribed. P1 million was the minimum investment with increments of P100,000. The interest rate is 6.4250 p.a. and the maturity date is May 13, 2025.
“We did not expect this to be as big as this. It was a record issuance for BPI,” said Gasmen. He added, “We were surprised because it’s towards the end of the year. I think there’s a lot of uncertainty with regard to the economy, as well as the global economy given all these with geopolitical risks.”
“We did not expect this to be as big as this. It was a record issuance for BPI,” said Gasmen. He added, “We were surprised because it’s towards the end of the year. I think there’s a lot of uncertainty with regard to the economy, as well as the global economy given all these with geopolitical risks.”
BPI said proceeds of the bond will be for general corporate purposes, including funding source diversification.
BPI said proceeds of the bond will be for general corporate purposes, including funding source diversification.
“The funds will help us focus more on building our loan portfolio and also our securities portfolio. This addresses funding for next year. It’s one of the things we wanted to do for next year to diversify our funding sources,” said Gasmen.
“The funds will help us focus more on building our loan portfolio and also our securities portfolio. This addresses funding for next year. It’s one of the things we wanted to do for next year to diversify our funding sources,” said Gasmen.
The bonds are the second tranche under BPI’s 100 billion peso-denominated bond program approved by the board in May 2022. Gasmen said they may issue another one next year, but it will most likely be dollar-denominated.
The bonds are the second tranche under BPI’s 100 billion peso-denominated bond program approved by the board in May 2022. Gasmen said they may issue another one next year, but it will most likely be dollar-denominated.
They will also review the market conditions next year, especially if there will be adjustments in the monetary policy rate. Of the P100-billion bond program, BPI has so far reached around P56 billion.
They will also review the market conditions next year, especially if there will be adjustments in the monetary policy rate. Of the P100-billion bond program, BPI has so far reached around P56 billion.
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