SEC confirms BPI’s Care Bonds as social bonds

THE Securities and Exchange Commission has confirmed that the planned issuance of the country’s first Covid Action Response Bonds (Care Bonds) by the Bank of the Philippine Islands (BPI) qualifies as Social Bonds under the Association of Southeast Asian Nations’ Social Bonds Standards in the Philippines.

Proceeds from the issuance will be used to finance or refinance eligible micro, small and medium enterprises (MSMEs) under the bank’s recently established sustainable funding framework.

The planned offering supplements BPI’s efforts to support the recovery of MSMEs.

Some of these initiatives include the loan payment deferral program that allowed businesses to delay payments without interest charges, waiver of fees for online funds transfer transactions, and discussions with state-owned Philippine Guarantee Corp. to refine its loan products for qualified clients. (PR)