Ayala-led Bank of the Philippine Islands (BPI) has raised an equivalent of about P5.28 billion from a pioneering Swiss franc-denominated green bond issue that gives it two-year interest-free money to help save the planet.
This is the first public Swiss franc-denominated benchmark bond (CHF 100 million) from the Philippines, the first Asean (Association of Southeast Asian Nations) green bond benchmark for BPI and the first rated Philippine green bond in the international market.
It is also the first negative-yielding bonds to be issued out of the Philippines in the international capital markets.
These bonds carry zero annual coupon and will mature in 2021.
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“It’s mainly for Swiss investors where the yield is negative,” said BPI chief financial officer Maria Theresa Marcial.
Lead managers for the transaction are BPI Capital, Credit Suisse and UBS.