The offering included $500 million in 5-year notes and $300 million in 10-year notes, both issued under BPI’s $3 billion medium-term note program.
The country’s third-largest private lender executed the deal swiftly, completing it within 24 hours, a rare feat in global capital markets, made possible by its strong international following.
Investor demand drives down costs
• BPI held investor meetings in Hong Kong, Singapore, and Europe, which helped build strong interest in the bond offer.
• Because of the high demand, BPI was able to lower its borrowing cost by 25 basis points on both the 5-year and 10-year bonds—this is called pricing compression.
• The final cost for the 5-year bond was set at 105 basis points above U.S. Treasuries, with investors earning a 5.00 percent fixed interest.
• The 10-year bond was priced at 130 basis points above U.S. Treasuries, with a 5.625 percent fixed interest.
• Most of the bonds were bought by large investors in Asia, especially fund managers, banks, and insurance firms, showing strong regional confidence in BPI.
Refinancing and growth ahead
The proceeds from the bond sale will be used for refinancing and general corporate purposes, supporting BPI’s long-term growth and funding needs.
The bonds are rated BBB+ by S&P, showing that BPI is in a strong financial position. The deal is set to be finalized on April 7, 2025. BPI Capital led the deal as the sole global coordinator, with BofA Securities, HSBC, J.P. Morgan, and UBS helping as joint bookrunners.
