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April 12, 2024

BPI’s global appeal: Diverse investors flock to $400 million bond offering

The Bank of the Philippine Islands (BPI) raised $400 million through its tightly-priced offering of 5-year senior unsecured notes.

This landmark issuance sets a new record, achieving the narrowest spread ever recorded by a Philippine non-sovereign entity for a similar bond offering.

BPI’s offering proved to be a magnet for investors, attracting $1.3 billion in orders – more than triple their initial target. This overwhelming interest from global investors allowed BPI to significantly tighten pricing by 35 basis points compared to initial guidance.

Over 80% were snatched up by investors across Asia, showcasing strong regional confidence. The remaining 19% went to investors in a diverse range of markets, including Europe, the Middle East, Africa, and even offshore US accounts.

Fund managers were the biggest investor group, followed by a mix of banks, private banks, financial institutions, and insurance companies.

BPI Capital spearheaded the transaction as the sole global coordinator. Partnering with them as joint lead managers were J.P. Morgan, Mizuho, Standard Chartered Bank, and UBS.

The proceeds from this roffering will be used for strategic refinancing of existing obligations, further solidifying BPI’s financial position. Additionally, the funds will fuel the bank’s continued growth and expansion efforts.

The notes themselves boast a Baa2 rating from Moody’s, signifying a solid investment grade.

The record-tight pricing reflects the strong confidence investors hold in the Philippine bank’s promising future.