BPI offering P5-B ASEAN green bonds

The Bank of the Philippine Islands (BPI) on Thursday announced that it will issue ASEAN Sustainable Bonds worth P5 billion with an option to upsize.

In a disclosure to the Philippine Stock Exchange, BPI said the peso-denominated and fixed-rate bonds form the third tranche of its P100-billion Bond Program. This was approved by BPI Board of Directors on 18 May 2022.

“The net proceeds of the offer will be used for the financing or refinancing of new or existing eligible green or social projects as defined under or consistent with BPI’s Sustainable Funding Framework,” BPI said.

ASEAN goals

The new bonds support the goals of the Association of Southeast Asian Nations (ASEAN) to improve the lives of poor communities and ensure sustainable growth of industries through climate change mitigation measures.

In 2021, BPI committed to stop funding new coal projects under its Energy Transition Financing Facility which requires companies to retire their coal plants 15 years ahead of their technical lives and shift to renewable power plants.

BPI chief of sustainability Eric Luchangco said the bank’s loans for eco-friendly projects have exceeded 50 percent of its energy loan portfolio.

Energy-efficient buildings

The bank added that it already financed 398 projects amounting to P252 billion under its Sustainable Development Finance Program which helps build energy-efficient buildings and jumpstart sustainable agricultural projects.

Aside from these, the bank has launched attractive loan terms to encourage consumers to acquire sustainable homes and less carbon-emitting electric vehicles.

The sustainability bonds are due in 2026 with a tenor of one year and a half.

Investors can place a minimum investment of P500,000 and increase it by increments of P100,000.

The offer period runs from 18 July to 2 August. BPI plans to list the bonds with the Philippine Dealing and Exchange Corp. on 9 August.

BPI Capital Corp. and Standard Chartered Bank are the joint lead arrangers and selling agents for this offer.