BDO UNIBANK, Inc. ended its offering of its peso-denominated sustainability bonds on Monday, a week earlier than planned, amid robust investor demand.
“Originally set to run from July 9 to 22, the bank decided to close the offer period early, on July 14, following strong demand from both retail and institutional investors,” the Sy-led bank said in a disclosure to the stock exchange on Tuesday.
The 1.5-year fixed-rate bonds will be issued, settled, and listed on the Philippine Dealing and Exchange Corp. on July 29 as scheduled.
“The net proceeds of the proposed issuance will be used to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework, support the bank’s lending activities, and diversify the bank’s funding sources,” BDO said.
BDO wanted to raise at least P5 billion from the issuance, it said last week. It has not announced the final issue size.
The bonds have a coupon rate of 5.875% per annum and were sold at a minimum investment amount of P500,000 and in additional increments of multiples of P100,000 thereafter.
ING Bank N.V. Manila Branch was the sole arranger and sustainability coordinator for the issuance. It also acted as a selling agent along with BDO.
Meanwhile, BDO Capital & Investment Corp. was the financial advisor for the transaction.
The bonds mark BDO’s fourth issuance of peso-denominated ASEAN Sustainability Bonds following a P55.7-billion issue in July 2024, P63.3-billion issue in January 2024, and a P52.7-billion issue in January 2022.
The Securities and Exchange Commission (SEC) has issued confirmation that the issue complies with requirements under the ASEAN Sustainability Bond Standards and the SEC’s ASEAN Sustainability Bond Circular.
BDO’s net income rose by 6.49% to P19.7 billion in the first quarter amid the sustained performance of its core businesses.
Its shares dropped by 60 centavos or 0.39% to end at P151.40 each on Tuesday. — Aaron Michael C. Sy
