BPI raising $2-billion to fund operations, expansion
Bank of the Philippine Islands, the third largest lender in terms of assets, is putting up a medium-term note program amounting up to $2 billion or its equivalent in other currencies to fund future expansion and operations.
BPI, a member of conglomerate Ayala Corp., said in a disclosure to the stock exchange Thursday the fund-raising initiative was approved by its board of directors in a meeting on June 13, 2018.
“The program is part of the bank’s initiatives to maximize flexibility in accessing funding expediently,” BPI said.
“The issuance of notes under the program shall be subject to market conditions and shall be determined by requirements of the bank’s business,” it said.
The bank is intensifying its long-term digitalization efforts to support rapid growth and at the same time back up the government’s campaign for a wider financial inclusion.
Bank president and chief executive Cezar Consing said the ultimate objective was to elevate the bank’s digital infrastructure, bring innovative services to existing and future clients and support the initiative of the Bangko Sentral ng Pilipinas to develop a National Retail Payment System, which involves policies and standards for a “cash-lite” economy.
“It’s about shaping and creating a whole new experience for our customers through digitalization, offering them a better, safer, more convenient way to bank with us. A cash-lite economy will bring significant benefits to our country,” Consing said in a statement.
“This long-term digitalization journey will enhance our extensive network of ATMs, CAMs (Cash Acceptance Machines), online facility, and mobile app, to enable us to offer convenient, self-service banking,” he said.
BPI Enterprise Services head Ramon Jocson said the process of digitalization would eventually lead to exceptional customer experience as more and more people gain more confidence in doing online and mobile transactions.
“Many of BPI’s clients now are digitally savvy. Many of our clients have come to embrace technology because of the convenience, safety, and reliability it offers. The proliferation of smartphones has also stimulated innovation, allowing our customers to save time through a wide array of transactions they can do anytime and anywhere,” he said.