Ayala-led Bank of the Philippine Islands (BPI) will offer P5 billion worth of peso-denominated fixed-rate social bonds later this month, with an option to increase the amount depending on investor demand.
The bonds, called BPI SIGLA (Supporting Individuals Grow, Lead and Achieve) bonds, will have a two-year tenor and mature in 2028. They will carry the ASEAN Social Bond label and are part of BPI’s P200 billion bond program approved by its board in October 2024.
Proceeds from the offer will be used to finance or refinance eligible social projects under the bank’s sustainable funding framework, in line with ASEAN Social Bond Standards.
The public offer period will run from January 26 to February 4, with listing scheduled on February 13 at the Philippine Dealing and Exchange Corp. BPI Capital Corp. and ING Bank N.V., Manila Branch will serve as joint lead arrangers and selling agents.
Separately, BPI said its board has authorized management to pursue the merger of its subsidiaries BPI Direct Banko Inc. and Legazpi Savings Bank Inc., with BPI Direct as the surviving entity, subject to required approvals.
BPI said the merger is expected to strengthen capital, improve efficiency, enhance governance and risk management, and boost digital capabilities. The bank added that the consolidation should improve service quality, optimize resources, and strengthen the group’s competitive position in key markets.
