BANK of the Philippine Islands (BPI) raised P50 billion in its latest public bond offering, marking its largest peso debt issuance to date.
This was more than the bank’s P5-billion target for its two-year Supporting People to Grow, Lead, and Achieve (SIGLA) bonds.
“The final size of the issuance of BPI SIGLA bonds has been increased 10 times compared to its original issuance of P5 billion again, which shows the strong demand of investors. The positive market outlook for these funds emphasizes the growing alignment between capital markets and sustainability goals,” BPI Treasurer and Head of Global Markets Dino R. Gasmen said in a speech at the listing event of the Philippine Exchange held is the Philippines.
SIGLA bonds are priced at 5.405% per annum, net of applicable taxes, payable quarterly.
This release marks the second reduction in the P200 billion bond and commercial paper program approved in October 2024.
“All profits will be allocated only to finance or refinance eligible social projects in accordance with BPI’s Sustainable Funding Framework which is in line with the ASEAN Social Bonds Standards,” BPI said in a statement.
BPI Capital Corp. and ING Bank NV-Manila Branch were the lead arrangers and sellers in the issue.
FUNDING SYSTEMS
The bank will always be able to touch the financial markets and want to issue bonds more often, but probably in smaller amounts, Mr. Gasmen told reporters on the sidelines of the event.
“We are exploring. But it may be small sizes. I think that will create a yield curve for the issuance of BPI. Also, I think we will reach more customers. Not all customers may have money to invest twice a year… Yes, we will see how we can do it, because given the way the bonds are issued at the moment, it will not be possible,” he said.
“Every month is the ultimate goal. But I think there are some processing issues that need to be worked on,” said BPI President and Chief Executive Officer Teodoro K. Limcaoco.
“Therefore, we work at BPI to issue regular. It is not that big, but often so that it is always available to our customers. We create a curve, and it gives people opportunities to invest in BPI. More products – whether it is a bond, a deposit, or an investment fund,” he said.
The bank is working on a new fundraising strategy to give them flexibility in their issuance plans, he added.
“You do it opportunistically or you do it as a plan. If you do it opportunistically, you try to get a bigger size. If you do a plan, you limit it because you know you will go out again,” said Mr. Limcaoco, noting that the small amounts of P5 billion issued are sufficient for the bank’s funding needs.
“I think bonds are good for the financial markets and good for the banking system. Actually, from a regulatory point of view, bonds are a very efficient way of financing. You raise money for specific needs – for example, sustainable, green, or environmental. It actually also encourages good lending and helps society.”
Mr. Gasmen added that the bank’s next offering may also be environmental, social, and governance or ESG-themed since they have seen a strong demand for these types of issuance, which are also subject to a lower reserve requirement.
BPI also has assets that fall under ESG categories that require financing and were not covered by previous releases, he said.
“We thought that if we actually needed to issue another ESG bond, it would be possible because the volume of ESG-themed assets that the bank has issued in the past year has exceeded our expectations.”
The BPI last tapped the domestic market in May last year, raising P40 billion in its issuance of 1.5-year sustainability bonds marketed as Supporting Inclusion, Environment, and Growth or SINAG Bonds. This was more than the original P5-billion plan. The notes bear an interest rate of 5.85% per annum payable quarterly.
PDEx President Stephanie Marie A. Zulueta said in the same event that the listing of the primary market reached P454 billion in 2025, an increase of 25% from P362.23 billion in 2024, with 46% of this issued in ESG topics.
Secondary market trading volume also reached a record P15.91 trillion last year, up 61% from P9.89 trillion in 2024, he added.
LARGE BORROWING
Meanwhile, Mr. Limcaoco said that the loan activity that will start this year is similar to the levels seen in the previous quarter, which is considering the fragile situation amid the corruption that has caused economic growth.
“Our view is that, although it may continue to be a little weak in the first months of the year, this sentiment can change quickly. I’m starting to hear some evidence from some friends and customers who are very close to consumers who see a direct connection. They are starting to believe that there is some confidence.”
Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. he said this week that they believe the Philippine economy can bounce back this year as they have seen some recovery in business confidence.
Gross domestic product in the Philippines grew by 4.4% in 2025, the slowest pace in five years and well below the official target of 5.5%-6.5%, driven largely by public and private spending amid management concerns over alleged corruption related to flood control and infrastructure projects.
BPI’s net income grew 7.4% year-on-year to P66.62 billion in 2025 on steady income despite higher expenses and provisions. – Aaron Michael C. Sy
