Bank of the Philippine Islands ( BPI ) has raised 50 billion pesos ( US$860.4 million ) through the listing of social bonds, its largest local-currency debt issuance to date.

The BPI Supporting Individuals Grow, Lead, and Achieve ( BPI Sigla ) bonds, which bear the Asean Social Bond label as affirmed by the Securities and Exchange Commission, form part of the lender’s efforts to offer environmental, social, and governance ( ESG ) related products.

The bond’s final issue size was increased 10 times its initial base issuance of 5 billion pesos amid strong demand, says BPI treasurer and head of global markets Dino Gasmen.

Listed on the Philippine Dealing & Exchange Corp ( PDEx ), the BPI Sigla bonds have a two-year tenor and an interest rate of 5.4050% per annum, paid quarterly. 

“This issuance represents a significant milestone in our commitment to promoting inclusive growth and empowering underserved sectors across the Philippines,” Gasmen says, adding that proceeds will be channeled towards initiatives ”that generate positive social impact”, in accordance with BPI’s Sustainable Funding Framework and consistent with the Asean Social Bonds Standards. 

The listing represents the second tranche of BPI’s bond and commercial paper programme, amounting to 200 billion pesos, which was approved by its board of directors in October 2024. 

Gasmen says the BPI Sigla bonds reflect a significant stride in BPI’s broader ESG strategy by directing capital towards projects that promote inclusive, equitable, and socially impactful development. 

“Through the BPI Sigla bonds, BPI continues to reinforce its leadership in sustainable finance. We remain firmly committed to developing innovative financial instruments that support the country’s sustainable development goals while delivering long-term value to our investors,” he adds.

BPI Capital Corporation and ING Bank ( Manila Branch ) served as joint lead arrangers and selling agents of the offer.