Ayala-led Bank of the Philippine Islands (BPI) said it has priced its CHF100 million Association of Southeast Asian Nations (ASEAN) green bond at 100.040 percent with a re-offer yield of -0.020 percent as it taps the offshore debt market to finance its green projects.

The net proceeds from the bonds will be used for the financing and/or re-financing, in whole or in part, of “green” eligible projects.

The Swiss franc-denominated bonds carry an annual coupon rate of 0.00 percent. Payment date is set on 24 September 2019. The bonds will mature on 24 September 2021.

BPI mandated BPI Capital, Credit Suisse and UBS as lead managers for the transaction.

The listed lender said that upon issuance, the bonds will be the first ever Swiss franc-denominated benchmark out of the Philippine market, the first ASEAN green bond for BPI and the first negative yielding bonds in the country to be issued in the international capital market.

“The net proceeds from the bonds will be used for the financing and/or re-financing, in whole or in part, of “green” eligible projects, as further described in BPI’s green finance framework,” BPI disclosed to the stock exchange on Friday.

BPI said the offering is a drawdown from the $2-million (or its equivalent in other currencies) medium-term note program it recently announced.

In July, BPI announced the establishment of its green finance framework which will serve as its guide for future fund-raising activities for projects it deems will benefit the environment.