BPI raises P5.3 B from Asean green bonds

Ayala-led Bank of the Philippine Islands (BPI) has raised 100 million Swiss francs (P5.3 billion) from its maiden ASEAN green bond issuance to bankroll “green” eligible projects.

The bank said in a disclosure to the Philippine Stock Exchange (PSE) the bonds were priced at 100.040 percent with a re-offer yield of -0.020 percent last Thursday.

BPI said this is the first ever public Swiss franc-denominated benchmark out of the Philippines and is the first negative yielding bonds to be issued out of the country in the international capital markets.

Furthermore, the benchmark bond of BPI is the first ever rated Philippine green bond in the international capital markets. The bonds are set to mature in September 2021.

Lead managers for the transaction are BPI Capital, Credit Suisse and UBS.

The listed bank established a Green Finance framework last June highlighting its longstanding commitment to fund projects with clear environmental benefits.

The framework covers the evaluation and selection of eligible projects, management of proceeds, and reporting of any green bonds or loans to be issued by BPI.

It is aligned with the International Capital Market Association green bond principles, the ASEAN green bond standards, and the Loan Market Association green loan principles.

The Ayala-led bank is a consistent market leader in sustainable energy finance, with cumulative disbursements from its sustainable energy finance team as well as structured finance division worth P125.76 billion as of 2018.

The fund raising activity is part of the bank’s $2 billion medium term note program.

Last September, it raised $600 million via the issuance of five-year senior unsecured fixed rate Regulation S notes with a coupon of 4.25 percent to lengthen the maturity of the bank’s borrowings.

BPI chief financial officer Maria Theresa Marcial Javier earlier said the listed bank remains opportunistic in tapping the debt capital markets to supplement our funding requirements.

“We are very seriously looking at tapping the debt capital market in terms of additional bond issue and we will announce the details in due course,” she said.

Javier said the details of the planned fund raising activity within the year is still being finalized, but the amount would definitely be below $500 million and lower than the amount raised last year.