BPI secures $300-M loan facility

By Cai U. Ordinario @caiordinario

Ayala-led Bank of the Philippine Islands (BPI) has secured a $300-million syndicated loan to partly refinance its bonds that are maturing in September.

BPI said it signed an agreement for the 3-year syndicated term loan facility with The Hongkong and Shanghai Banking Corp. ltd. and

Standard Chartered Bank as Mandated l ead a r ranger, Bookrunner and Underwriters (Mla BUs).

BPI said the proceeds from the facility will be used to partly refinance its existing $600-million bond due September, as well as for general corporate purposes.

“BPI is extremely pleased with the strong level of support that this transaction has received during syndication. We are highly appreciative of the seamless delivery that the two

Mla BUs have provided in assisting BPI achieve this outcome and further extend our thanks to the diverse banking group who have joined this very important transaction for our institution,” BPI Chief Finance Officer and Chief Sustainability Officer er ic Roberto M. luchangco said. The facility received an exceptional reception in syndication, and was even upsized from the original $200 million to $300 million to partially accommodate the heavy oversub- scription of more than two times.

It is supported by a total of 21 lenders, including the two Mla BUs and 19 participating lenders. HSBC is the facility agent. earlier, BPI reported that its net income rose 23 percent to P25.1 billion in the first half. This led to a return on equity of 15.5 percent. BPI said the drivers of its strong financial performance were average asset base expansion, margin growth, and lower provisions.