BPI plans sustainability bond offering to raise at least P5 billion

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BPI sustainability bond offering

Highlights

BPI will offer at least P5 billion in peso-denominated fixed-rate SIBOL Bonds from Nov. 23 to Dec. 4, with issuance set for Dec. 16.
The SIBOL Bonds, third tranche in BPI's P200-billion program, will fund eligible green and social projects under BPI's Sustainable Funding Framework.
BPI's shares fell P3.20 (3.3%) to P93.80 after reporting P48.9 billion net income for the first nine months of 2026, driven by loan growth and fee revenues.

Offer structure and funding purpose

As reported by BusinessWorld, citing Bank of the Philippine Islands, the lender will offer P5 billion in peso-denominated fixed-rate BPI Sustainable Impact Building Our Legacy, or SIBOL, Bonds, with an option to upsize the transaction.

The public offer period is scheduled to run from Nov. 23 to Dec. 4, unless adjusted by the bank and the lead arrangers and selling agents. The bonds are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on Dec. 16.

The notes represent the third tranche of BPI's P200-billion bond and commercial paper program approved in October 2024. The bank said net proceeds will be used to finance or refinance eligible green and social projects under its Sustainable Funding Framework, in line with ASEAN Sustainability Bond Standards.

The Securities and Exchange Commission authorized the use of the ASEAN Sustainability Bond label for the SIBOL Bonds on Oct. 20. BPI Capital Corp. and ING Bank N.V. Manila Branch are acting as joint lead arrangers and selling agents for the deal.

Fundraising track record and business backdrop

BPI has already issued P90 billion from its P200-billion peso fundraising program. The bank last accessed the domestic market in January, when it raised P50 billion from its two-year SIGLA Bonds priced at 5.405% per annum, above its initial P5-billion plan and its largest peso bond issuance so far.

In May 2024, the lender also issued P40 billion in 1.5-year SINAG Bonds carrying an interest rate of 5.85% per annum. Those bonds are set to mature in December this year.

BPI said the SIBOL issuance also marks its 175th anniversary, with the 1.75-year tenor reflecting the milestone. For the first nine months of 2026, the bank posted net income of P48.9 billion, supported by loan growth and fee-based revenues, while its shares fell P3.20, or 3.3%, to P93.80 on Monday.

Philippine sovereign bond market reforms planned for early 2027 were previously covered by our publication, including a new pricing convention for peso government bonds and the country’s expected inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets. We noted these steps could broaden the investor base and improve liquidity and price discovery, but that cheaper funding and stronger real-economy investment still depend on factors like global rates, fiscal credibility, and deeper domestic capital-market participation.

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