BPI Introduces SINAG Bonds Offering 5.85% Return Under ₱200B Program

The Bank of the Philippine Islands (PSE: BPI) has officially launched its Supporting Inclusion, Nature, and Growth (SINAG) Bonds, marking the inaugural issuance under its newly approved ₱200 billion Bond and Commercial Paper Program. Priced at 5.85% per annum and maturing in 1.5 years, the SINAG Bonds aim to raise ₱5 billion, with the possibility of increasing the size based on investor demand.

This fixed-rate bond offering opened on May 20, 2025, and will run until May 30, 2025. Proceeds from the sale are earmarked exclusively for sustainable projects, reinforcing BPI’s strategy to align growth with environmental and social responsibility. The bonds are expected to be listed on the Philippine Dealing & Exchange Corp. (PDEx) on June 10, 2025.

What Makes the SINAG Bonds Distinct

Unlike ordinary debt instruments, the SINAG Bonds are officially recognized as ASEAN Sustainability Bonds, a classification granted by the Philippine Securities and Exchange Commission (SEC) on March 17, 2025. This designation confirms that BPI’s bond issuance complies with the ASEAN Sustainability Bond Standards, a regional framework ensuring that funds are directed toward projects with measurable environmental and social benefits.

This independent verification is critical: it assures investors that their capital is supporting initiatives with clearly defined sustainability metrics, such as reduced carbon emissions, improved social equity, or enhanced financial inclusion.

Where the Proceeds Will Go

BPI has outlined its intent to finance or refinance eligible projects under its Sustainable Funding Framework. While specific projects have not been itemized in the current offering, the framework typically covers areas such as:

• Renewable energy and energy efficiency
• Green buildings and sustainable transport
• Water and wastewater management
• Financial inclusion programs
• Access to healthcare and education
• Women-led or gender-equal businesses

It’s worth noting that BPI’s internal shift toward sustainability has been more than symbolic. By 2024, the bank reported that more than 50% of its energy loan portfolio was already allocated to environmentally friendly projects. In addition, through its Energy Transition Financing Facility, BPI committed to phasing out new coal project financing and helping clients retire coal plants 15 years ahead of schedule.

Investment Terms and Market Position

To participate in the SINAG Bond offering, investors must commit a minimum of ₱500,000, with additional investments in ₱100,000 increments. The relatively high minimum investment threshold and short tenor of 1.5 years suggest the bonds are designed to attract institutional investors and high-net-worth individuals seeking both portfolio diversification and impact-aligned returns.

The fixed annual coupon of 5.85%, paid quarterly, positions the SINAG Bonds competitively in a market where interest rates remain elevated amid global economic uncertainty. Although the bonds are not insured by the PDIC and not registered with the SEC due to an exemption under the Securities Regulation Code, they are offered through trusted channels—BPI Capital Corporation and Standard Chartered Bank—which act as joint lead arrangers and selling agents.

Strategic Implications for BPI

This issuance is not just about raising capital. It serves as a signal to the market that BPI is embedding sustainability deeper into its operational and financing priorities. The bank’s last foray into this space was in August 2024, when it raised ₱33.7 billion from its Sustainable, Environmental, and Equitable Development (SEED) bonds. The SINAG Bonds, while smaller in size, add a social inclusion and financial access lens to the bank’s ongoing green financing strategy.

Further, by tapping the local bond market under a structured long-term debt program, BPI gains flexibility in managing its balance sheet while also responding to growing investor demand for Environmental, Social, and Governance (ESG)-aligned instruments.

Investor Takeaway

For investors with the means and appetite, the BPI SINAG Bonds offer a relatively short-term commitment with a respectable yield, backed by a major Philippine financial institution. More importantly, they provide an opportunity to support projects aimed at improving both environmental quality and social outcomes in the country.

In a market where ESG integration is still maturing, BPI’s structured and externally verified approach stands out. However, as with any financial instrument, investors should weigh the SINAG Bonds not just on the merits of sustainability, but also on the basis of risk, return, and portfolio fit.

Key Details at a Glance