1. Visit any BPI branch during the Public Offer Period and request for the forms to invest in BPI Reinforcing Inclusive Support for MSMEs Bonds (BPI RISE Bonds). Be sure to bring one (1) valid government-issued I.D.
2. Fill out all the necessary details and submit the complete documentary requirements.
3. Give the cash to be invested to the branch personnel. If it will be debited from your account, please make sure that your account is funded.
For more information, you may refer to the Offering Circular and the Pricing Supplement, or visit any BPI branch.
Overview
Php
1,000,000*
Minimum investment
5.7500%
Interest rate **
Quarterly
Interest period
January 9 to 20, 2023
Public offer period***
*In increments of Php 100,000
**Subject to 20-25% final withholding tax or such other rates as may be required by law or regulations.
*** Subject to change at the discretion of the Issuer and Joint Lead Arrangers.
Bank of the Philippines Islands (BPI) launches its 1.5-year Peso-denominated Bond (the Bonds) with an option for early redemption, the first tranche under BPI’s Php 100,000,000,000.00 Bond Program (the Program).
Indicative summary of the offer
Issuer | Bank of the Philippine Islands (BPI) |
Issue and ranking | Fixed rate bonds constituting the direct, unconditional, unsecured and unsubordinated obligations of BPI |
Issue size | Php 5.00 billion with the option to upsize |
Offer period | January 9, 2023 to January 13, 2023 |
Maturity date | July 30, 2024 or 1.5 years from issue date |
Issue date | January 30, 2023 |
Tenor | 1.5 years |
Issue price | At par (or 100% of face value) |
Interest period and interest payment date | Quarterly Payments, 30/360 count basis |
Early redemption | The Bonds shall be available for early redemption by the Issuer on the first (1st) anniversary of the issue date and every interest payment thereafter; at par or 100% of face value. |
PDIC coverage | Not applicable |
Use of proceeds | Shall be used to finance or refinance the business requirements of eligible MSMEs1 in line with BPI's Sustainable Funding Framework. |
Taxation | Subject to 20% or 25% final withholding tax or such other rates as may be required by law or regulations |
Joint lead arrangers | BPI Capital Corporation (BPI Capital) 2 ING Bank N.V., Manila Branch (ING) |
Sole selling agent | BPI Capital Corporation |
Registrar, depository, and paying agent | Philippine Depository & Trust Corp. (PDTC) |
Trustee | Development Bank of the Philippines – Trust Banking Group (DBP-Trust) |
Market maker | ING Bank N.V. Manila Branch (ING) |
Listing | The Bonds will be listed on the Philippine Dealing & Exchange Corp. (PDEx). All secondary trades are to be executed on PDEx. |
Notes:
1 MSMEs, primarily comprised of (i) wholesale and retail trade, repair of motor vehicles; (ii) accommodation and food service activities; (iii) manufacturing; (iv) other service activities; and (v) financial and insurance activities.
2 BPI Capital is a wholly owned subsidiary of BPI.
Quick guide
How to invest through BPI Asset Management and Trust Corporation (BPI AMTC)
Frequently asked questions
What are bank bonds?
These are bonds issued by banks pursuant to BSP Circular 1010 (Series 2018) and BSP Circular 1062 (Series 2019), which is further clarified by BSP Memorandum No. M-2020-001.
What is the BPI Php Bond Program?
The Bonds are the first tranche under the Php 100,000,000,000.00 Php Bond Program approved by the Board of Directors of BPI on 18 May 2022. This is separate from the previous Bank Bond program established in 2019, which has been fully utilized. The objective of the Program is to diversify the Bank’s funding sources and support, when possible, the Bank’s sustainability strategy.
Why should I invest in bank bonds?
Bank bonds are issued by financial institutions which are regulated by the BSP. As such, banks are governed by regulatory guidelines particularly on risk management. Bank bonds offer an alternative form of investment to both retail and institutional investors. Tenors that can be issued include shorter tenors (1 to 3 years), which are not traditionally available through the long-term negotiable certificates of time deposits or LTNCTD market. The Bonds are also negotiable, which means they may be bought or sold in the secondary market through an eligible trading participant on PDEx.
What is the rationale behind the Bonds issuance?
We value Micro, Small, and Medium Enterprises (MSMEs) as important drivers of the country's economic development.
According to the Department of Trade and Industry’s 2021 MSMEs Statistics, 99.6% from a total of 1.1 million business enterprises classify as a MSME. This provides 5.5 million jobs or 65.5% of the country’s total employment.
In continued recognition of the importance of MSMEs to the Philippine economy, and given the limited size of their balance sheet and cash flow constraints, BPI has launched the Bonds with the proceeds to be used by the bank for financing or refinancing eligible MSMEs to support the community’s recovery from the pandemic and growth.
SMEs have limited resources, have shorter financial buffer, and are more exposed to various risks, including environmental and social risks – and therefore, need stronger support from banks. Beyond SMEs, the proceeds of the Bonds will also finance micro-entrepreneurs who, normally have limited access to basic banking services (especially loans), because they do not meet the basic requirements of banks.
How is the BPI Bonds offering different from previous BPI Bond Issuances?
The main difference will be the use of proceeds. While most of the past issuances have used proceeds for general corporate purposes (including funding source diversification and balance sheet expansion), the use of proceeds for this offering will specifically be for financing or refinancing the business requirements of eligible MSMEs in line with BPI’s Sustainable Funding Framework.
Following the previous BPI CARE Bonds which sought to enable MSMEs to hurdle significant challenges posed by the pandemic, the Bonds aim to further the bank’s effort to continue its commitment to financial inclusivity and nation building.
Download
Preliminary Offering Circular
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Pricing Supplement dated January 30, 2023
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2021 BPI Audited Consolidated Financial Statement
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2020 BPI Audited Consolidated Financial Statement
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BPI Reviewed 3Q 2022 SEC17Q_vF
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Disclaimer
THESE OFFERING CIRCULAR AND PRICING SUPPLEMENT (the “OFFERING MATERIALS”) ARE BEING DISPLAYED ON THIS WEBSITE TO MAKE THE OFFERING MATERIALS ACCESSIBLE TO INVESTORS IN THE PHILIPPINES AND ARE TO BE VIEWED EXCLUSIVELY WITHIN THE PHILIPPINES.
The Offering Materials on this website are intended to be available only to Philippine and non-Philippine citizens residing in the Philippines, corporations organized under Philippine law and juridical entities licensed to transact business in the Philippines. The Offering Materials are not intended for distribution outside the Philippines. If you have gained access to this transmission contrary to the foregoing restrictions, you will be unable to purchase any of the securities described herein.
The Offering Materials and the information contained herein are subject to completion or amendment without notice. Under no circumstances shall these Offering Materials constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there be any offer, solicitation or sale of the securities in any jurisdiction where such offer, solicitation, or sale is not permitted.
THE BONDS REFERRED TO IN THIS COMMUNICATION ARE SECURITIES EXEMPT FROM REGISTRATION UNDER SECTION 9.1(E) OF THE SECURITIES REGULATION CODE AND WILL ACCORDINGLY NOT BE REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION. FURTHERMORE, THE BONDS ARE NOT DEPOSIT INSTRUMENTS AND ARE NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION. (“PDIC”).
This announcement is subject to change/completion and is not an offer for sale of the Bonds or a solicitation of an offer to buy the Bonds. Prospective investors should refer to the Offering Circular dated [December 6, 2022] (“Offering Circular”) and the Pricing Supplement dated [December 6, 2022] (the “Pricing Supplement”) for full details on the Program and the Bonds. BPI and the Joint Lead Arrangers reserve the right to adjust the Offer Period and the Issue and Listing Date. All terms are subject to the Offering Circular and Final Pricing Supplement.
This does not purport to, and does not, contain all of the information that may be required to evaluate factors relevant to a recipient making any investment decisions. Each recipient should make its own independent appraisal of, and investigation into, the financial condition, risks, creditworthiness, affairs, status and nature of BPI as the basis of any investment decision.
None of the information should be interpreted as investment advice of any kind and should not be used as the basis for any financial decision to invest in the Bonds or any securities or participation in any transaction. Prospective investors should consult their own counsel, accountants, or other advisors as to legal, tax, business, financial, and related aspects of the purchase of the Bonds, among others. No warranty or representation, express or implied, is given as to the accuracy or completeness of that information. In no event will BPI, its affiliates, any of the Joint Lead Arrangers, the Sole Selling Agent, nor any of their respective directors, employees or advisors accept any liability with regard to the information contained herein.
BPI is regulated by the Bangko Sentral ng Pilipinas, https://www.bsp.gov.ph
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| Deposits are insured by PDIC up to P500,000 per depositor.| BPI is regulated by the Bangko Sentral ng Pilipinas