The Bank of the Philippine Islands is watching the debt markets closely for that optimum moment when its entry best serves the need to refinance USD 300 million maturing in September this year.
“We’re looking at various options, but we will refinance that bond. I think it’s just a matter of time that we’re ready to refinance it, the method we’re going to use,” Eric M. Luchangco, BPI chief financial officer, said.
According to Luchangco, the lender has some flexibility as to the timing the proposed transaction.
“We have some flexibility. We can refinance ahead. But the downside of refinancing ahead is that you’re carrying two costs at the same time. We also have to look at what the market is like, if it looks like it’s a very good opportunity to refinance now (when rates are low) maybe it’s worth to have that negative carry,” Luchangco said.
He would not disclose preference but the return could come in the form of a bond or a loan from a syndicate of domestic or foreign financiers.
BPI reported net income in 2023 rising 30 percent higher to P51.7 billion from only P39.6 billion in 2022.
