BPI expands fundraising program, cites demand
STRONG investor demand has prompted the Bank of the Philippines Islands (BPI) to raise its initial bond and commercial paper offer from P15 billion to P25 billion.
In a disclosure on Friday, the Ayala-led lender said the offer was part of its plan to generate as much as P50 billion from the bonds and commercial papers established in September.
The bond program comes after the Bangko Sentral ng Pilipinas (BSP) relaxed its rules on bank bond issuances to help develop the local capital market.
In a statement on August 10, the BSP said that, under the enhanced rules, eligible banks would no longer need prior regulatory approval in issuing those papers.
The disclosure comes a day after Moody’s Investors Service affirmed the lender’s investment grade credit rating of “Baa2” with a stable outlook.
The credit rating agency said this also meant there was a “very high probability” that the government would extend support to BPI, if needed.
Earlier this week, the bank reported that its net income reached P17.01 billion in the first nine months of 2018, down 0.23 percent from the amount in the same period last year.
BPI shares rose by P4.40 to P88.90 apiece on Friday, in line with a 1.88-percent rise for the Philippine Stock Exchange index.
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