The Philippines’ first COVID response bonds have been launched by the Bank of the Philippine Islands (BPI).
BPI announced on June 22, 2020, the availability of its 3.05% COVID Action Response Bonds due 2022 (the “CARE Bonds”), the country’s first peso-denominated bonds to be issued as a direct response to the COVID-19 pandemic.
The CARE Bonds were issued as the third tranche of BPI’s ₱100 Billion Bond Program.
BPI aims to raise at least ₱3 billion from the bond offering, which will run from June 22, 2020, until July 17, 2020, while the issue and listing date of the CARE Bonds will be on August 7, 2020.
The Bank and the Joint Lead Arrangers may agree to adjust the timing of any of these dates as considered appropriate.
The proceeds of the CARE Bonds will be used to finance and refinance eligible Micro, Small, and Medium Enterprises (“MSMEs”) under the Bank’s Sustainable Funding Framework.
The SEC has confirmed that the CARE Bonds qualify as Social Bonds under the ASEAN Social Bonds Standards in the Philippines.
MSMEs have been significantly affected by the global pandemic and BPI recognizes that these enterprises, which account for a significant percentage of the country’s employment, are crucial to the growth and recovery of our economy.
Supporting these businesses will also help create a more inclusive society where all Filipinos benefit from the country’s economic gains.
The CARE Bonds will have a tenor of 1.75 years and an interest rate of 3.05% p.a., paid quarterly in arrear, with the minimum investment amount set at ₱1,000,000, with additional increments of ₱100,000 thereafter.
BPI Capital Corporation (“BPI Capital”), and The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) are the Joint Lead Arrangers of the CARE Bonds. BPI Capital is Sole Selling Agent, while HSBC is Participating Selling Agent.
Interested investors may visit any BPI branch or contact BPI Capital at (02) 8246-5166 or (02) 8246-6154.
BPI pioneered its ASEAN Green Bonds in the last quarter of 2019.
BPI Family Savings Bank exceeded its maiden bond issuance target also in the last quarter of 2019.
SEND WELL WISHES in the comments below to BPI for issuing the Philippines’ first COVID response bonds.
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