BPI raises P40B through sustainability bonds

The Bank of the Philippine Islands (BPI) has raised P40 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.

The bank 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.

Refinance green projects

Bond sale proceeds will be used by BPI to finance or refinance eligible green and social projects aligned with its Sustainable Funding Framework.

BPI opened the offer period for the bonds on 20 May and shortened it four days earlier to 26 May 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.

SINAG Bonds

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

The Philippines has committed 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.