BPI breaks record with P40 billion sustainability bond listing

MANILA, Philippines — Ayala-led Bank of the Philippine Islands marked a major milestone yesterday with the successful listing of its P40 billion sustainability bonds, marking the lender’s largest thematic bond issuance to date.

The amount was eight times higher than the original issue size of P5 billion due to robust demand across institutional, high net worth and retail clients.

Structured with a 1.5-year tenor and a fixed interest rate of 5.85 percent per annum (paid quarterly), the BPI Supporting Inclusion, Nature and Growth (SINAG) Bonds are fully aligned with the ASEAN Sustainability Bond Standards, as affirmed by the Securities and Exchange Commission on March 17.

The proceeds will be used to finance or refinance eligible green and social projects under BPI’s Sustainable Funding Framework.

“This issuance is not just a financial milestone, but an expression of our shared belief across institutional, high-net worth, and retail clients that banking can be a catalyst for positive change,” BPI treasurer and head of global markets Dino Gasmen said.

“The enthusiastic response to the BPI SINAG Bonds reflects a growing alignment between capital markets and sustainability. We are honored by the trust placed in us and excited to channel these funds into projects that directly benefit communities and the environment.”

The BPI SINAG Bonds listed on the Philippine Dealing & Exchange Corp. also marked a significant stride in BPI’s broader environmental, social and governance (ESG) strategy, integrating sustainability across its business lines.

In an interview following the listing, Gasmen said the P40 billion raised was a deliberately calibrated figure, ensuring that BPI could responsibly deploy the funds to meaningful ESG-compliant projects. This was despite the strong demand that could have supported more.

“We could have issued at least P20 billion more,” he said.

“But we had to weigh that against what we can actually promise and deploy. We didn’t want to borrow for sustainability purposes and then fail to deliver on our end,” he added.

Looking ahead, Gasmen confirmed that BPI’s sustainable, environmental and equitable development (SEED) bonds would mature in February 2026. The bank is looking to refinance this, most likely through another bond issuance.

“But let’s look at what the opportunities in the market are. We’re evaluating the tenor. There’s a lot of uncertainty in the market right now, so shorter terms like 1.5 years are attractive,” he said.

“If the central bank’s policy rate cycle stabilizes or drops, we may go longer. Investors may want better yields, and that might push us to issue longer-dated instruments,” he added.

BPI raised P33.7 billion through the issuance of its SEED bonds last year. The 1.5-year fixed-rate bonds are due in 2026 with an interest rate of 6.2 percent per annum.