BPI raises $800M from global bond investors
BPI secured $500 million from the sale of five-year notes and $300 million from 10-year notes. The five-year notes were mostly sold to Asia-based investors; the 10-year notes also attracted subscriptions from Asia, representing 82 percent, with the remaining 18 percent coming from Europe, the Middle East and Africa.
The capital-raising activity is focused on BPI’s aim to expand the bank’s client base to 50 million. In 2024, BPI hiked its net income to a record P62 billion, partly through its acquisition of Gokongwei-led Robinsons Bank.
photograph courtesy of Bank of the Philippine Islands
The Bank of the Philippine Islands (BPI) has raised a total of $800 million from its issuance of senior unsecured notes to foreign investors.
In a disclosure to the Philippine Stock Exchange on Friday, BPI said it secured $500 million from the sale of five-year notes and $300 million from 10-year notes.
The five-year notes were mostly sold to Asia-based investors, accounting for 93 percent of the total investors. The remaining 7 percent comprised investors from Europe, the Middle East and Africa.
Fund managers
Majority of the investors were fund managers, with a 52 percent share, followed by banks and institutions with 35 percent, corporations with 12 percent, and insurance firms with 1 percent.
Similarly, the 10-year notes attracted subscriptions from Asia, representing 82 percent, while the remaining 18 percent came from Europe, the Middle East and Africa.
The bulk of investors, or 47 percent, are fund managers, while 23 percent are insurance firms. Others are banks with a 16 percent share and private firms with 14 percent.
These debt papers are part of BPI’s $3-billion medium-term note program.
“The net proceeds will be used for refinancing and general corporate purposes,” BPI said.
The transaction for the notes will be settled on 7 April.
BPI announced it started investor meetings on 26 March.
Expanding client base to 50 million
The successful capital-raising activity came after BPI executives said they aim to expand the bank’s client base to 50 million.
Last year, Ayala-owned BPI increased its net income to a record P62 billion, up by 20 percent compared to the level in 2023, partly due to its acquisition of Gokongwei-led Robinsons Bank.
Total loans hit P2.3 trillion, reflecting a growth of 18.2 percent from transactions with both BPI and Robinsons Bank clients. This pushed up net interest income by 22 percent to P127.6 billion.
BPI chief economist Jun Neri expects the Philippine economy to expand by 6.3 percent this year from 5.6 percent in 2024 due to the country’s robust employment rate of over 95 percent, possible lower interest rates and enhanced tax incentives for foreign firms.