BPI raises P40B through sustainability bonds

Bank of the Philippine Islands (BPI) raised ₱40 billion from its sale of sustainability bonds called BPI Supporting Inclusion, Nature, and Growth Bonds, or BPI SINAG Bonds — the bank's largest peso-denominated bond issuance so far.

BPI listed the bonds on Tuesday on the Philippine Dealing & Exchange Corp.

"We are honored by the trust placed in us and are excited to channel these funds into projects that directly benefit communities and the environment," said BPI treasurer and head of global markets Dino Gasmen.

The bank will use the proceeds of the bond sale to finance or refinance eligible green and social projects aligned with its Sustainable Funding Framework.

BPI opened the offer period for the bonds on May 20 and shortened it four days earlier to May 26 after investors expressed overwhelming demand for the debt papers.

The BPI SINAG Bonds carry a maturity period of one year and six months and an interest rate of 5.8500 percent per annum, which is payable quarterly.

In 2021, Ayala-led 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 that the bank's loans for eco-friendly projects already exceeded 50 percent of its energy loan portfolio.

The BPI SINAG Bonds passed the ASEAN Sustainability Bond Standards, which are among the 16 measures the regional body implements in making Southeast Asia carbon neutral by 2050.

The Philippines commits to slash its own carbon emissions by 75 percent by 2030.

"BPI’s legacy as a pioneering financial institution now includes being a leader in sustainable finance," Gasmen said.

"We remain committed to developing innovative instruments that support the country’s sustainable development goals while delivering solid value to our investors," he added.