The Bank of the Philippine Islands (BPI) marked a significant milestone by successfully raising US$800 million in the international capital markets through a public bond offering on Thursday, March 19, 2025.
The transaction consisted of two tranches: US$500 million in 5-year senior unsecured fixed-rate notes and US$300 million in 10-year senior unsecured fixed-rate notes. This represents BPI’s largest-ever bond issuance in a single transaction.
The notes were issued under BPI’s US$3 billion Medium Term Note (MTN) Program, with the net proceeds intended for refinancing purposes and general corporate needs. The announcement of the transaction mandate was made on March 26, 2025, followed by an extensive global marketing campaign that included investor calls and meetings across Hong Kong, Singapore, and Europe.
With strong feedback from investors, BPI proceeded with the transaction, setting initial pricing guidance (IPG) for the 5-year notes at T+130 basis points (bps) and for the 10-year notes at T+155 bps. Following a strong investor response, final pricing was set at T+105 bps for the 5-year notes and T+130 bps for the 10-year notes, reflecting a tightening of 25 bps across both tranches.
In terms of geographic allocation, 93% of the 5-year notes were distributed to investors in Asia, while the remaining 7% were allocated to EMEA accounts. The distribution of the 5-year notes was primarily to high-quality fixed-income investors: 52% to fund managers, 35% to banks and financial institutions, 12% to private banks and corporates, and 1% to insurance companies.
For the 10-year notes, 82% were allocated to investors in Asia, and the remaining 18% were placed with EMEA accounts. The distribution of the 10-year notes was similar to high-quality fixed-income investors: 47% to fund managers, 23% to insurance companies and official institutions, 16% to banks and financial institutions, and 14% to private banks and corporates.
The 5-year notes were priced at a spread of 105 bps over the 5-year U.S. Treasury, with a fixed coupon of 5.00%, while the 10-year notes were priced at a spread of 130 bps over the 10-year U.S. Treasury, with a fixed coupon of 5.625%. Both tranches are rated BBB+ by S&P.
The transaction is scheduled to settle on April 7, 2025. BPI Capital Corporation served as the Sole Global Coordinator, with BofA Securities, HSBC, J.P. Morgan, and UBS acting as Joint Bookrunners for the offering.
