The Bank of the Philippine Islands (BPI) issued and listed Peso-denominated fixed-rate BPI Sustainable, Environmental, and Equitable Development (SEED) Bonds due 2026, totaling P33.7 billion, comprising the third tranche of BPI's P100 billion bond program, approved by its Board of Directors on May 18, 2022.
The BPI SEED Bonds mark the bank's largest thematic bond issuance to date.
"BPI is committed to integrating sustainability in how we do business. The net proceeds from BPI SEED Bonds will enable us to foster sustainable development to build a better, more resilient Philippines," said BPI treasurer Dino Gasmen.
In the wake of robust demand for the BPI SEED Bonds across institutional, high-net-worth, and retail clients, the final issue size was increased by 6.7 times the initial P5.0 billion. This landmark offering is BPI's first foray into the sustainable bond format.
BPI will use the net proceeds of the offer to finance or refinance new or existing eligible green and/or social projects as defined under and consistent with BPI's sustainable funding framework.
The BPI SEED Bonds, now tradable on the Philippine Dealing & Exchange Corp., have a term of 1.5 years and bear an interest rate of 6.2000% per annum, payable quarterly.
BPI Capital Corporation and Standard Chartered Bank served as the joint lead arrangers and selling agents for the offer.
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