BPI unit raises over P2B from bonds
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Wed, 27 Nov 2019 16:43:49 +0000
BPI Family Savings Bank (BFSB) has generated more than P2 billion in fresh funds from its maiden bond issuance.
In a disclosure on Wednesday, the Bank of the Philippine Islands’ (BPI) wholly owned thrift bank and consumer lending arm said it had exceeded its target of P2 billion from the issuance, prompting it to cut short the offer period by a week and a half from the initial November 25 to December 6.
“The bank attributes this to robust demand from both institutional investors, as well as high-net worth and retail clients,” it added.
BFSB priced its maiden bond issuance on November 21 at 4.30 percent per annum “to support its drive to diversify its investor base and fund its asset expansion, particularly loan growth, digitalization initiatives, and general corporate purposes.”
The two-and-a-half-year tenor bonds are slated for issuance and listing on the Philippine Dealing & Exchange Corp. on December 16.
BPI Capital Corp. is the sole selling agent, while The Hongkong and Shanghai Banking Corp. Ltd. is the sole arranger and participating selling agent.
The Land Bank of the Philippines — Trust Banking Group is the appointed trustee.
The maiden issuance is the first tranche of the BSFB’s P35-billion bond program, which was approved by its board of directors on October 31.
BFSB said that, as of end-June, it maintained its position as the Philippines’ largest thrift bank with assets totaling P270.7 billion
It added that it had 33 years’ worth of expertise in the consumer lending space, and is poised to maintain its position as the Philippines’ largest thrift bank, in terms of assets, loans, and deposits.