The Bank of the Philippine Islands (BPI) retains sufficient room within its existing fundraising framework to potentially increase its upcoming sustainability bond issuance, providing adequate flexibility to refinance a ₱40-billion bond maturing later this year.
Speaking with reporters on the sidelines of the bank’s anniversary gala on Monday, October 26, BPI Senior Vice President for Global Markets Segment Jethro Daniel Sorra explained that the base offering for the BPI SIBOL Bonds could experience an upsizing of eightfold or more. This strategic financial maneuver is driven by a ₱40-billion bond set to mature in the fourth quarter, establishing a clear benchmark for the institution’s borrowing requirements.
While debt securities remain a primary option, Sorra noted that BPI could likewise explore time deposits or alternative borrowing instruments to guarantee sufficient capital replacement.
“We have an amount that’s due for refinancing. Our plan is to at least cover enough for potential refinancing,” Sorra stated, emphasizing that the final volume will ultimately rely on prevailing market conditions and investor demand.
BPI is scheduled to roll out a ₱5000000000 sustainability bond offering next month aimed at backing various environmental and social initiatives. The 1.75-year fixed-rate paper will run its public offering period from November 23 through December 4.
Expressing optimism for strong market participation, Sorra remarked, “If the bond becomes oversubscribed, we’re happy to take down that funding.” He added that the bank’s available space remains robust, noting, “We can accommodate the ₱40-billion refinancing and an additional amount after that. So, it’s a big enough shelf.”
Sorra further clarified, “We can’t speculate yet on the size of the bond. However, there is a maturing bond, and we intend to cover some, all, or a portion of it.” BPI maintains high confidence in its shelf program, which boasts approximately ₱100 billion in remaining capacity.
Looking ahead, the country’s oldest lender plans to evaluate its 2027 funding trajectory as market dynamics shift, remaining assured of its capability to address upcoming obligations through bonds, term deposits, or hybrid financing strategies.
Most of BPI’s peso-denominated debt instruments focus on sustainability, with the BPI SIBOL Bonds representing the third tranche of its expansive ₱200-billion bond and commercial paper initiative.
The upcoming notes are slated for issuance and listing on the Philippine Dealing & Exchange Corporation on December 16, with BPI Capital Corporation and ING Bank N.V.’s Manila branch acting as joint lead arrangers and selling agents.