BPI targets P3B from CARE Bonds

LISTED Bank of the Philippine Islands (BPI) is looking to generate at least P3 billion from its offer of Covid Action Response Bonds (CARE Bonds).

In a disclosure on Monday, the Ayala-led lender said that the 3.05-percent CARE Bonds is the country’s first peso-denominated bonds to be issued as a direct response to the coronavirus disease 2019 (Covid-19) pandemic.

The public offering began on Monday and will run until July 17, 2020, while the issue and listing date of the CARE Bonds will be on August 7, 2020.

BPI said the proceeds of the CARE Bonds will be used to finance and refinance eligible micro, small and medium enterprises (MSMEs) under its sustainable funding framework.

“MSMEs have been significantly affected by the global pandemic and BPI recognizes that these enterprises, which account for a significant percentage of the country’s employment, are crucial to the growth and recovery of our economy,” it noted.

“Supporting these businesses will also help create a more inclusive society where all Filipinos benefit from the country’s economic gains,” the bank added.

The bonds will have a tenor of 1.75 years and an interest rate of 3.05 percent per annum, paid quarterly in arrear, with the minimum investment amount set at P1 million with additional increments of P100,000 thereafter.

BPI said the Securities and Exchange Commission has confirmed that the CARE Bonds qualify as Social Bonds under the Asean Social Bonds Standards in the Philippines.

BPI Capital Corp. and Hongkong and Shanghai Banking Corp. Ltd. (HSBC) are the joint lead arrangers of the bonds. BPI Capital is sole selling agent, while HSBC is participating selling agent.

“The bank and the joint lead arrangers may agree to adjust the timing of any of these dates as considered appropriate,” BPI said.

The lender earlier raised P33.9 billion in fresh funds from its last bond offer in March.