BPI generates P33.7B after green bonds float

The Ayala group’s Bank of the Philippine Islands (BPI) on Friday successfully issued and listed its peso-denominated and fixed-rate Sustainable, Environmental, Equitable and Development (SEED) bonds worth P33.7 billion, which is nearly seven times bigger than minimum offer.

This marked BPI’s biggest thematic bond issuance whose proceeds will be used to finance and/or refinance projects that comply with the bank’s Sustainable Funding Framework. 

The SEED Bonds are now available for trading on the platform of the Philippine Dealing and Exchange Corp.

Through the bond proceeds, BPI will help implement projects that accelerate environmental protection and socioeconomic growth of communities, especially the less priveleged groups. 

Sustainability a must

“BPI is committed to integrating sustainability in how we do business. The net proceeds from the SEED Bonds will enable us to foster sustainable development that will contribute to a better, more resilient Philippines,” BPI treasurer Dino Gasmen said. 

The SEED Bonds carry an interest of 6.2 percent per annum which is payable quarterly and have a maturity period of one and a half years. 

The SEED Bonds are part of BPI’s P100 billion bond program the bank’s directors approved on 18 May 2022 and had a minimum aggregate value of P5 billion. 

BPI required a minimum investment of P500,000 and additional increments of P100,000.

Last month, BPI shortened its offer period a day earlier due to overwhelming demand, following the announcement of the original offer timeline from 19 July to 12 August.

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 green projects have exceeded 50 percent of its energy loan portfolio.

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