The Bank of the Philippine Islands, the country’s fourth largest lender, has priced its peso-denominated fixed-rate bond due 2026 as it started Friday a two-week offer aimed at raising at least P5 billion to provide loans to sustainable and environment-friendly projects.
Called BPI SEED bonds, short for BPI Sustainable, Environmental, and Equitable Development bonds, the 1.5-year debt paper will be issued at par value and with an interest rate of 6.20 percent. BPI has the option to increase the issue size, depending on demand.
The net proceeds from the issuance will be utilized to finance or refinance new or existing Eligible Green and/or Social Projects aligned with BPI’s Sustainability program.
The bonds are scheduled to be issued and listed on the Philippine Dealing and Exchange Corp. on 9 August.
BPI aims to integrate sustainability into its core corporate strategies, ensuring a balanced approach between growth objectives and environmental and social responsibilities. The issuance of BPI SEED Bonds underscores the Ayala Group-led bank’s commitment to supporting projects that contribute to the United Nations Sustainable Development Goals.
The Securities and Exchange Commission has confirmed that BPI SEED Bonds qualify as ASEAN Sustainability Bonds, certifying that the funds raised will be directed towards initiatives with verified systems ensuring positive environmental and social impacts. This classification provides assurance to bondholders that their investments will support sustainable development initiatives.
BPI Capital Corp. and Standard Chartered Bank are acting as joint lead arrangers and selling agents for the offering.
