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The Bank of the Philippine Islands, the Ayala Group’s financial services arm, is planning to raise ₱5 billion from a planned offering and issuance Peso-denominated fixed-rate BPI Supporting Inclusion, Nature, and Growth Bonds due 2026 (BPI SINAG Bonds).
In a disclosure to the Philippine Stock Exchange, the bank said it has the option to upsize the issuance which marks the inaugural tranche under BPI’s ₱200 billion Bond and Commercial Paper Program approved by its Board of Directors on October 16, 2024.
The net proceeds of the Offer will be used for the financing or refinancing of eligible projects under BPI’s Sustainable Funding Framework consistent with the ASEAN Sustainability Bond Standards.
The BPI SINAG Bonds, which will have a tenor of one and one-half (1.5) years, will carry the “ASEAN Sustainability” label, as affirmed by the Securities and Exchange Commission on March 17, 2025.
Applications to invest in the BPI SINAG Bonds will be received at a minimum principal investment amount of ₱500,000, and in increments of ₱100,000 thereafter.
The Offer will commence on May 20, 2025 and end on May 30, 2025, unless otherwise determined by BPI. The BPI SINAG Bonds are expected to be issued and listed with the Philippine Dealing and Exchange Corp. on June 10, 2025.
BPI Capital Corporation and Standard Chartered Bank are the Joint Lead Arrangers and Selling Agents for the Offer and they reserve the right to update the Offer terms, periods and dates, as deemed appropriate and with due notice.
BPI reported P₱16.6 billion in net income for the first quarter of 2025, 9.0 percent higher than the ₱15.3 billion earned in the same period last year, and up by 18.3 percent on the sequential quarter.
The Bank attributed the solid performance to higher revenues, which more than offset the impact of the increases in operating expenses and provision for losses. This result translated to a return on equity and return on assets of 15.35 percent and 2.05 percent, respectively.
Total revenues for the first quarter reached ₱44.7 billion, up 13.1 percent year-on year, driven by robust growth in net interest income of 15.3 percent as a result of an 8.6 percent increase in average earning asset base, and a 30- basis point expansion in net interest margin to 4.49 percent.
Non-interest income stood at ₱10.3 billion, up 6.3 percent, on higher credit cards fees and transaction-based service charges, which more than offset the drop in forex and trading income.
Operating expenses ended at ₱20.3 billion, up 12.7 percent year-on-year, mainly driven by spending on manpower, technology, and business volume-related expenses. Cost-to-income ratio improved by 16 bps to 45.4 percent.
The Bank recorded provisions of ₱3.0 billion for the first quarter. NPL ratio stood at 2.26 percent, with the NPL coverage ratio at 100.11 percent.
Total assets stood at ₱3.3 trillion, up 6.9 percent year-on-year. Gross loans reached ₱2.3 trillion, up 13.2 percent, due to strong growth across all portfolios, on the back of robust growth from non-institutional loans.
Total deposits of ₱2.6 trillion also grew 6.3 percent year-on-year, bringing the Loan-to-Deposit Ratio to 89.4 percent.
Total equity stood at ₱448.6 billion, up 11.3 percent year-on-year, with an indicative Common Equity Tier1 Ratio of 14.69 percent and a Capital Adequacy Ratio of 15.43 percent, both well above regulatory requirements.
In March 2025, the Bank successfully tapped the international capital markets with a public US-dollar bond offering of $500 million 5-year and $300 million 10-year Reg S senior unsecured fixed rate notes.
The 5-year Notes were priced at a spread of 105 bps over the prevailing 5-year U.S. Treasury, with a fixed coupon of 5.00 perent, while the 10-year Notes were priced at a spread of 130 bps over the prevailing 10-year U.S. Treasury, with a fixed coupon of 5.625 percent.
The $800 million raised across both tranches represents BPI’s largest issuance size in a single transaction. The bonds are listed in the Singapore Exchange Limited.
Also in March, Fitch Ratings affirmed the Bank’s Long-term Issuer Default Rating of “BBB-” with a Stable Outlook. The Bank recently concluded its annual review with Moody’s Ratings and awaits the forthcoming results.
