Monday , January 17 2022

BPI increases a bond bid to B25 B of B5 B »Manila Bulletin Business



Not by James A. Loyola

The Philippine Islands Bank (BPI) has raised P25 billion of a proposal of 1.25 years fixed rate bonds due in March 2020, and has priced on the coupon of 6.7970 per cent per year, payable quarterly



The coupon represents a spread of 20 bps over the BVAL 1.25 year interpolated government benchmark rate, and at the top of the spread range of 20 to 40 bps communicated to institutional investors during the institutional book build.

The proposal supports the Bank's growth objectives and expansion plans while diversifying its funding sources. At the same time, fixed rate bonds address clients' needs for new investments with shorter tenants compared to long-term deposits certificates that can be negotiated.

The proposal is the first BPI following recent approval by the Bangral Sentral Pilipinas of regulations and regulations related to issuances by bond banks and commercial papers.

Due to a strong response from retail and organizational investors, BPI has decided to close the one-day motion period before the timetable on November 19, 2018.

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