Philippine lender Bank of the Philippine Islands ( BPI ) on March 27 priced a dual-tranche bond offering totalling US$800 million, representing its largest issuance in a single transaction.

The Reg S deal is comprised of a five-year tranche amounting to US$500 million, which was priced at 99.355% with a coupon of 5% to offer a yield of 5.148%. This was equivalent to a spread of 105 basis points ( bp ) over US treasuries, or 25bp tighter than the initial price guidance in the 130bp area.

The other tranche was a 10-year bond amounting to US$300 million, which was priced at 99.698% with a coupon of 5.625% and a re-offer yield of 5.665%. This represented a spread of 130bp over US treasuries, which was also 25bp inside of the initial marketing range of 155bp.

The bank announced the transaction mandate on March 26 and conducted a comprehensive investor marketing exercise involving a global investor call and a series of meetings covering investors across Hong Kong, Singapore and Europe. It then launched the transaction bookbuilding on the back of constructive investor feedback.

The deal generated a combined order book of US$1.6 billion from 137 accounts. In terms of geographical distribution, 93% of the five-year bond was sold in Asia and 7% in Europe, Middle East and Africa ( EMEA ). By type of investors, asset and fund managers were the biggest buyers of the paper as they accounted for 52%, followed by banks with 35%, private banks and corporates 12% and insurance companies 1%.

The 10-year bond was distributed 82% in Asia and 18% in EMEA. Asset and fund managers were also the biggest buyers of the bond with 47%, followed by insurance companies and official institutions with 23%, banks and other financial institutions 16%, and private banks and corporates 14%.

The bonds were issued under BPI’s US$3 billion medium-term note programme, and the net proceeds will be used for refinancing and general corporate purposes.

BPI Capital Corporation is the sole global coordinator for the transaction as well as a joint bookrunner, along with BofA Securities, HSBC, J.P. Morgan and UBS.