BPI secures $400-M to fund lending business


BANK of the Philippine Islands (BPI), the second largest bank in the Philippines, said it has secured a $400 million (P18.69 billion), three-year syndicated loan facility to finance its lending business and investments.

In a statement issued on Thursday, the bank said it entered the syndicated loan deal with various lenders in Asia, Europe, and US.

BPI said the loan facility generated strong interest and was heavily oversubscribed, which led to a higher amount of $400 million from the initial $250 million.

“BPI intends to utilize the facility to fund strong growth in loans and investments,” the bank said.

In the first half of this year, BPI recorded an 18.6 percent year-on-year increase in its loan book to P904.38 billion driven by growth in corporate loans, which expanded by 20.4 percent.

The original mandated managers and bookrunners of the loan facility were Australia New Zealand Banking Group Ltd, The Hongkong and Shanghai Banking Corp. Ltd (HSBC), Mizuho Bank Ltd., and Standard Chartered Bank.

Other mandated lead arrangers and bookrunners were Commerzbank Aktiengesellschaft, Hong Kong branch; Sumitomo Mitsui Banking Corp., Singapore branch; United Overseas Bank Ltd., acting through its offshore banking unit of Taipei branch; Bank of America Merrill Lynch; Hua Nan Commercial Bank Ltd., offshore banking branch; and Mega International Commercial Bank Co. Ltd., offshore banking branch.

BPI is the banking arm of the Ayala Group via umbrella firm Ayala Corp. Its subsidiaries are BPI Family Savings Bank Inc.; BPI Capital Corp.; BPI Direct Savings Bank; BPI International Finance Ltd; BPI (Europe) Plc.; BPI Century Tokyo Lease & Finance Corp.; and BPI/MS Insurance Corp.

As of end-December 2015, the Ayala-owned bank had 814 branches, including 45 kiosk branches, one branch in Hong Kong and four branches in London. It also has 2,210 automated teller machines and 550 cash accept machines. Additionally, there are four BPI Globe BanKO branches in strategic locations in the country.


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