BANK of the Philippine Islands (BPI) raised P50 billion from its latest offering of social bonds, marking its largest peso debt issuance up to now.
This was well above the bank’s initial P5-billion goal for its two-year Supporting Individuals Grow, Lead, and Achieve (SIGLA) bonds.
“The ultimate issue size of BPI SIGLA bonds was increased 10 times in comparison with its base issuance of P5 billion once more, 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 on the listing ceremony for the bonds on the Philippine Dealing and Exchange Corp. (PDEx) held on Friday.
The SIGLA bonds were priced at 5.405% each year, gross of applicable tax, to be paid quarterly.
This issuance marks the second drawdown from the bank’s P200-billion bond and business paper program approved in October 2024.
“Net proceeds can 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 press release.
BPI Capital Corp. and ING Bank N.V.-Manila Branch were the joint lead arrangers and selling agents for the difficulty.
FUNDRAISING PLANS
The bank will remain opportunistic about tapping the capital markets and needs to issue bonds more steadily, but likely in smaller tranches, Mr. Gasmen told reporters on the sidelines of the event.
“We’re exploring. Nevertheless it could also be smaller sizes. I feel that’s going to create a yield curve for BPI issuances. Also, I feel we’ll reach more customers. Not all customers probably have funds to speculate just twice a 12 months… In fact, we’re going to see how we will do it, because given the best way bonds are issued in the intervening time, it’s not doable,” he said.
“Monthly is the eventual goal. But I assume there are some processing issues that should 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 in order that there’s all the time availability for our customers. We construct up a curve, and it gives people opportunities to speculate in BPI. More products — whether it’s a bond, a deposit, or an investment fund,” he said.
The bank is working on a brand new fundraising strategy to provide them flexibility on their issuance plans, he added.
“You do it opportunistically otherwise you do it as a program. For those who do it opportunistically, you are trying to get as big a size. For those who do a program, you limit it because you realize 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 feel bonds are good for the capital markets and truly 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 instance, 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’ve seen strong demand for these sorts of issuances, that are also subject to a lower reserve requirement.
BPI also has some assets falling inside ESG categories that need financing and haven’t been covered by previous issuances, he said.
“We were pondering that if we really want to issue one other ESG bond, it’s possible because the amount of ESG-themed assets that the bank has generated over the past 12 months exceeded our expectations.”
BPI last tapped the domestic market in May last 12 months, 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 rate of interest of 5.85% each year to be paid quarterly.
PDEx President Stephanie Marie A. Zulueta said at the identical event that primary market listings reached P454 billion in 2025, up 25% from P362.23 billion in 2024, with 46% of those being ESG-themed issuances.
Secondary market trading volume also reached a record P15.91 trillion last 12 months, rising by 61% from 2024’s P9.89 trillion, she added.
STEADY LENDING
Meanwhile, Mr. Limcaoco said lending activity to begin the 12 months has been just like 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 would persist to be somewhat weak in the primary months of the 12 months, this sentiment can turn in a short time. I’m starting to listen to some anecdotal evidence from some friends and clients who’re more on the buyer side who see the direct link. They’re starting to consider that there may be some confidence.”
Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. said this week that they consider the Philippine economy can rebound this 12 months as they’ve 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% goal, largely dragged by tighter private and non-private spending amid governance concerns as a result of corruption allegations linked to state flood-control and infrastructure projects.
BPI’s net income grew by 7.4% 12 months on 12 months to P66.62 billion in 2025 on sustained revenues despite higher expenses and provisions. — Aaron Michael C. Sy