BFSB earlier on said it eyes 5 to 10 percent growth in car loans on the back of a stable economic outlook and recovering demand in the auto industry.

The bank’s fund-raising activity will support its efforts to diversify investor base, fund asset expansion, digitization initiatives and general corporate purposes.

BPI Family Savings Bank (BFSB) is raising at least P2 billion as it marks its first foray into the debt market.

The wholly-owned thrift bank and consumer lending arm of Ayala-led Bank of the Philippine Islands said the fundraising activity will support its efforts to diversify investor base, fund asset expansion particularly loan growth, digitization initiatives and general corporate purposes.

The bonds will have a tenor of two and a half years with an interest rate of 4.30 percent to be paid quarterly.

The issuance also serves as the first drawdown from the P35-billion bond program approved by BFSB’s board of directors on 31 October.

Minimum investment amount is at P100,000 with increments of P50,000 thereafter.

“The public offer period will start on 25 November 2019 until 6 December 2019, with issue and listing date set for 16 December 2019. BFSB, however, reserves the right to adjust the timing of the offer period,” BPI told the stock exchange on Friday.

BPI Capital Corp. will serve as sole selling agent, while Hongkong and Shanghai Banking Corp. Ltd. is mandated as sole arranger and participating selling agent.

BFSB earlier on said it eyes 5 to 10 percent growth in car loans on the back of a stable economic outlook and recovering demand in the auto industry.

BPI’s net income surged 39 percent to P8.29 billion in the first half of the year from P5.98 billion in the same period last year due to strong growth in net interest income.