Bank of the Philippine Islands (BPI) set the interest rate for its planned P5-billion sustainability bonds at 5.85 percent per year.
The fixed-rate bonds, called BPI Supporting Inclusion, Nature and Growth Bonds or BPI SINAG Bonds, are peso-denominated and will mature in 1.5 years.
The total amount offered is P5 billion, with an option to increase. This is the first tranche to be issued under BPI’s P200-billion bond and commercial paper program. Interest payments will be made every quarter.
The minimum investment is P500,000, with additional investments accepted in P100,000 increments.
BPI said it would use the funds to finance or refinance eligible projects under its Sustainable Funding Framework. These projects will follow the ASEAN Sustainability Bond Standards.
The offer period will run from May 20 to May 30, 2025. The bonds are expected to be issued and listed on the Philippine Dealing and Exchange Corp. by June 10, 2025.
“BPI is committed to creating value for its stakeholders, the environment, and the communities in which it operates,” the bank said.
“It strives to have sustainability at the core of its corporate strategies, ultimately achieving its business growth aspirations alongside its environmental and social responsibility,” BPI said.
The Securities and Exchange Commission in March confirmed that the BPI SINAG Bonds qualify as ASEAN Sustainability Bonds.
“This gives bondholders confidence that their investments will have clear and measurable sustainable impacts,” BPI said.
BPI Capital Corp. and Standard Chartered Bank are the joint lead arrangers and selling agents for the offer.
BPI raised $800 million from the issuance of 10- and 5- year Reg S senior unsecured fixed-rate notes overseas in March 2025.
The notes were issued under BPI’s $3-billion medium term note program, and the net proceeds will be used for refinancing and general corporate purposes.
It also issued P33.7 billion in Sustainable, Environmental, and Equitable Development (SEED) Bonds in August, marking its largest thematic bond listing to date.
The bonds carried an interest rate of 6.2 percent per annum and were oversubscribed by more than six times the initial target of P5 billion.
