The Bank of the Philippine Islands (PSE: BPI) successfully raised $600 million 5-year Senior Unsecured Fixed Rate Reg S Notes with a coupon of 4.25% under its US$2 billion Medium Term Note Program. The Notes issuance marks the first in BPI’s 167-year history and the largest ever debut issuance for a bank in the Philippines.
BPI will issue the Notes as part of its initiatives to maximize flexibility in accessing offshore funding. This offering comes after successful fixed income investor calls and roadshow meetings in Hong Kong and Singapore on August 24 and 27, 2018.
“The success of our first ever issuance of the Notes is a reflection of investors’ confidence in the credit strength of BPI. It allows us to diversify our sources of liquidity, lengthen the maturity profile of our borrowings, and manage the growth of our balance sheet more efficiently. We are grateful for the support we have received from a broad range of high quality investors,” said Cezar P. Consing, BPI President and Chief Executive Officer.
The offering was about three times over-subscribed, with the order book allocated predominantly to Asia, with the rest to Europe. By investor type, the distribution comprised more than half of the Offer allocated to asset managers and fund managers, around one-third to banks, and the rest to insurance and pension funds, and private banks and other investors. The transaction is expected to settle on September 4, 2018.
The Notes will be listed on the Singapore Stock Exchange and are expected to have an Issue Rating of Baa2 by Moody’s.
BPI Capital Corp. acted as the Sole Global Coordinator and, jointly with Deutsche Bank, HSBC, and J.P. Morgan, as Joint Lead Managers and Joint Bookrunners for the drawdown.