BPI raises P33.9B from bond offer

LISTED Bank of the Philippine Islands (BPI) has generated P33.9 billion in fresh funds from its latest bond offering.

In a disclosure on Friday, the Ayala-led lender said the amount was six times more than its initial target size of P5 billion “due to strong demand from institutional investors as well as high-net-worth and retail clients.”

The bonds have been issued, and are now tradable on the Philippine Dealing & Exchange Corp. (PDEx). It has an interest rate of 4.05 percent per annum, payable quarterly, and a tenor of one-and-a-half years.

“We thank our investors and clients who supported this bond offer despite the volatile market conditions caused by the [coronavirus disease 2019 pandemic]. The issuance will help us deliver the financial services that our fellow Filipinos need during this difficult time,” BPI Treasurer Dino Gasmen said in the statement.

The bank closed the offer period on March 6, 11 days ahead of its original date — March 17 — as order book already reached more than P42 billion despite being priced at the tightest end of the indicative pricing range.

BPI Capital Corp. (BPI Capital) and ING Bank N.V., Manila Branch (ING) were the joint lead arrangers of the bonds. BPI Capital was the sole selling agent, while ING was a participating selling agent.

Earlier, the lender reported that its net income rose to P28.80 billion last year on the back of its robust operating results and strong balance sheet.

The amount was a 24.78-percent increase from the P23.08 billion netted in 2018.

Operating expenses reached P50.08 billion, up 14.8 percent from the previous year’s figure, while cost-to-income ratio fell to 53.1 percent from the year-ago’s 55.5 percent.

Loans extended to consumers, corporates, and small and medium enterprises helped total loans reach P1.48 trillion, an increase of 8.9 percent year-on-year.

BPI shares rose by P3.45 or 5.70 percent to close at P63.95 each on Friday.