LISTED Bank of the Philippine Islands (BPI) has raised P15.3 billion in fresh funds from the second tranche of its fixed-rate bond offer.
In a disclosure on Friday, the Ayala-led lender said proceeds would be used to offer better financial services for Filipinos.
The bond offering also exceeded BPI’s original target of P3 billion fivefold.
The fixed-rate bonds fetched an interest rate of 4.2423 percent per annum, payable quarterly, with a tenor of two years.
In a statement, BPI Treasurer Dino Gasmen attributed the successful offering to the unwavering trust and support of both retail and institutional investors of BPI.
“Our bonds offer an attractive return to investors. The funds raised put us in a better position to provide financial services to more clients individuals, small and medium businesses, and big corporations to fund a housing project, a new car, or their businesses,” he said.
The bonds, whose availability was announced on January 13, are now tradable on the Philippine Dealing & Exchange Corp.
The issuance is BPI’s second peso bond transaction, following its landmark P25-billion bond issuance in 2018.
BPI Capital Corp. (BPI Capital) and Standard Chartered Bank, Philippine Branch (SCB), served as the joint lead arrangers of the bonds. BPI Capital was sole selling agent, while SCB was participating selling agent.
Based on its latest financial statement, BPI’s net profit increased by 29.5 percent to P22.03 billion from January to September of 2019 from P17.01 billion in the same period last year.
The lender’s revenues jumped by 24.8 percent to P71 billion in the period, driven by the 19.8-percent growth in its net interest income, which reached P48.66 billion.
Its net interest margin widened by 26 basis points on higher asset yields, which rose by 89 basis points, partially offset by the higher cost of funds.