BPI raises $600M from senior notes

BANK OF THE Philippine Islands (BPI) raised $600 million through a senior unsecured note drawdown to maximize flexibility in offshore funding and diversify its liquidity sources.

In a disclosure to the stock exchange on Wednesday, the Ayala-led lender said it raised $600 million from its five-year senior unsecured fixed rate S notes which fetched a coupon of 4.25%.

The capital raising activity marked the maiden drawdown from its $2-billion medium-term note program established in June and the debut offshore bond offering of the lender.

“The bank will issue the notes as part of its initiatives to maximize flexibility in accessing offshore funding,” BPI said in the statement.

The transaction is expected to settle on Sept. 4 and will be listed on the Singapore Stock Exchange.

The notes are expected to have an issue rating of “Baa2” by debt watcher Moody’s Investors Service, a notch above the minimum investment grade.

The offering was about three times oversubscribed with the order book allocated primarily to Asia with the rest to Europe, the bank said.

By investor type, more than half of the offer was allocated to asset and fund managers, around one-third to banks and the rest to insurers, pension funds, private banks and other investors, BPI added.