BANK of the Philippine Islands (BPI) raised P50 billion from its latest offering of social bonds, marking its largest peso debt issuance to date.
This was well above the bank’s initial P5-billion target for its two-year Supporting Individuals Grow, Lead, and Achieve (SIGLA) bonds.
“The final issue size of BPI SIGLA bonds was increased 10 times compared to its base issuance of P5 billion once again, reflecting strong investor demand. The positive market perception for these funds underscores the growing alignment between capital markets and sustainability objectives,” BPI Treasurer and Global Markets Head Dino R. Gasmen said in a speech at the listing ceremony for the bonds at the Philippine Dealing and Exchange Corp. (PDEx) held on Friday.
The SIGLA bonds were priced at 5.405% per annum, gross of applicable tax, to be paid quarterly.
This issuance marks the second drawdown from the bank’s P200-billion bond and commercial paper program approved in October 2024.
“Net proceeds will be exclusively allocated to finance or refinance eligible social projects in accordance with BPI’s Sustainable Funding Framework consistent with the ASEAN Social Bonds Standards,” BPI said in a statement.
BPI Capital Corp. and ING Bank N.V.-Manila Branch were the joint lead arrangers and selling agents for the issue.
FUNDRAISING PLANS
The bank will remain opportunistic about tapping the capital markets and wants to issue bonds more frequently, but likely in smaller tranches, Mr. Gasmen told reporters on the sidelines of the event.
“We’re exploring. But it may be smaller sizes. I think that’s going to create a yield curve for BPI issuances. Also, I think we’ll reach more customers. Not all customers probably have funds to invest just twice a year… Of course, we’re going to see how we can do it, because given the way bonds are issued at the moment, it’s not doable,” he said.
“Monthly is the eventual target. But I guess there are some processing issues that need to be worked on,” BPI President and Chief Executive Officer Teodoro K. Limcaoco added.
“So, we’re working at BPI to have more frequent issuances. Not necessarily as large, but more frequent so that there’s always availability for our customers. We build up a curve, and it gives people opportunities to invest in BPI. More products — whether it’s a bond, a deposit, or an investment fund,” he said.
The bank is working on a new fundraising strategy to give them flexibility on their issuance plans, he added.
“You do it opportunistically or you do it as a program. If you do it opportunistically, you try to get as big a size. If you do a program, you limit it because you know you’ll come out again,” Mr. Limcaoco said, noting that minimum amounts of P5 billion per issuance are enough for the bank’s funding requirements.
“I think bonds are good for the capital markets and actually good for the banking system. Actually, from a regulatory perspective, bonds are a more efficient way of financing. You raise money for particular needs — for example, sustainable, green, or environmental. It actually also promotes good lending and helps the community.”
Mr. Gasmen added that the bank’s next offering could again be environmental, social, and governance or ESG-themed as they have seen strong demand for these kinds of issuances, which are also subject to a lower reserve requirement.
BPI also has some assets falling within ESG categories that need financing and have not been covered by previous issuances, he said.
“We were thinking that if we actually need to issue another ESG bond, it’s possible because the volume of ESG-themed assets that the bank has generated over the past year exceeded our expectations.”
BPI last tapped the domestic market in May last year, raising P40 billion from its offering of 1.5-year sustainability papers marketed as Supporting Inclusion, Nature, and Growth or SINAG Bonds. This was above the initial P5-billion plan. The papers were priced at an interest rate of 5.85% per annum to be paid quarterly.
PDEx President Stephanie Marie A. Zulueta said at the same event that primary market listings reached P454 billion in 2025, up 25% from P362.23 billion in 2024, with 46% of these being ESG-themed issuances.
Secondary market trading volume also reached a record P15.91 trillion last year, rising by 61% from 2024’s P9.89 trillion, she added.
STEADY LENDING
Meanwhile, Mr. Limcaoco said lending activity to start the year has been similar to levels seen last quarter, which was affected by weak sentiment amid a corruption scandal that has also dragged economic growth.
“Our view is, while it might persist to be a little weak in the first months of the year, this sentiment can turn very quickly. I am beginning to hear some anecdotal evidence from some friends and clients who are more on the consumer side who see the direct link. They’re beginning to believe that there is some confidence.”
Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. said this week that they believe the Philippine economy can rebound this year as they have seen some recovery in business confidence.
Philippine gross domestic product grew by 4.4% in 2025, the slowest in five years and well below the official 5.5%-6.5% target, largely dragged by tighter public and private spending amid governance concerns due to corruption allegations linked to state flood-control and infrastructure projects.
BPI’s net income grew by 7.4% year on year to P66.62 billion in 2025 on sustained revenues despite higher expenses and provisions. — Aaron Michael C. Sy