BPI, RCBC issuing local bonds anew to raise funds !-- -- Lawrence Agcaoili (The Philippine Star) - June 19, 2020 - 12:00am MANILA, Philippines The Bank of the Philippine Islands (BPI) and Rizal Commercial Banking Corp. (RCBC) are returning to the domestic debt market through the issuance of bonds as the country recovers from the economic fallout from the coronavirus disease 2019 or COVID-19 pandemic.

BPI said in a disclosure to the Philippine Stock Exchange (PSE) it is planning to issue the country's first COVID action response (CARE) bonds to support the recovery of micro, small and medium enterprises (MSMEs) severely battered by the health crisis. Cezar Consing, president and chief executive officer at BPI, said the planned CARE bonds highlight the bank's commitment to achieve positive social outcomes by creating value not only for its business, but also for its stakeholders, including clients and the communities in which it operates.

"MSMEs account for a relatively small percentage of total bank borrowings, but a very large percentage of total nationwide employment. Loans to MSMEs go a long way to keeping Filipinos working.

To support MSMEs is to embrace the Bayanihan spirit," Consing said. Some of the BPI's initiatives to support MSMEs include the loan payment deferral program allowing businesses to delay payments without interest charges, waiver of fees for online funds transfer transactions, as well as discussions with state-run Philippine Guarantee Corp.

to refine its loan products for qualified clients. "In recognition of the significant contribution of MSMEs to the Philippine economy and as a direct response to their needs as one of the sectors hardest hit by the global pandemic, proceeds from the issuance will be used to finance or refinance eligible MSMEs under the bank's recently established sustainable funding framework," the bank said.

The country's third largest bank said the Securities and Exchange Commission (SEC) has qualified the CARE bonds as social bonds under the ASEAN social bonds standards in the Philippines. BPI said the details of the planned fund raising activity, including the volume, are still being finalized.

Meanwhile, Yuchengco's RCBC is again accessing the domestic bond markets with a planned issuance of fixed-rate peso bonds under its P100 billion bond and commercial paper program. "The final terms will be determined prior to the launch of the issue depending on market and other conditions," RCBC said in a disclosure to the PSE.

The country's seventh largest private bank decided to more than triple its bond and commercial paper program to P100 billion instead of P30 billion to further strengthen its regulatory liquidity ratios. Of the total amount, the bank has raised P37.55 billion in four tranches, including the P7.05-billion fixed rate bond issuance last April, as well as the P30.5 billion via the issuance of bonds, P7.5 billion via the issuance of fixed-rate bonds, P15 billion via the issuance of the first peso-denominated ASEAN green bonds, and another P8 billion from the maiden ASEAN sustainability bonds last year.

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