BDO raises $300 million from 5-year notes

MANILA, Philippines -  BDO Unibank Inc. said it has successfully raised $300 million from the issuance of five-year fixed rate senior notes, proceeds of which will be used for the bank’s expansion.

“It is for loan expansion and better matching of assets and liabilities,” Nestor V. Tan, BDO president and chief executive officer, said.

The notes carry a coupon rate of 4.5 percent and a yield of 4.625 percent per annum.

BDO officials said demand for the issue was unexpectedly strong that the books were closed ahead of schedule.

BDO executive vice president and treasurer Pedro M. Florescio III said the orders “were built up rapidly and we decided to close the books early and take advantage of the interest our issue generated, given the volatility of current markets.”

Florescio added that the proceeds would likewise be used for re-lending.

UBS was the sole bookrunner and joint lead manager for the issue, with BDO Capital & Investment Corp. as joint lead manager.

Last year, BDO issued a P6.5-billion unsecured subordinated notes qualifying as Tier 2 capital. It was likewise oversubscribed as the original offer was for just P3 billion for both retail and institutional investors.

The capital raised will be used to fund its expansion program.