BDO eyes P5 billion from new ASEAN sustainability bonds

MANILA, Philippines — BDO Unibank Inc. is targeting to raise at least P5 billion through the issuance of peso-denominated fixed-rate sustainability bonds, marking the bank’s third green bond offering since 2022.

In a disclosure to the local bourse yesterday, the country’s largest bank said it has started offering the 1.5-year bonds with a coupon rate of 6.325 percent per annum.

For a minimum investment amount of P500,000, with additional increments of P100,000 thereafter, investors can buy the bonds until July 19. Listing on the Philippine Dealing & Exchange Corp. (PDEx) is on July 24.

“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 and diversify the Bank’s funding sources,” BDO said.

The lender also said it has the right to amend the terms and the timing of the issuance as it deems necessary.

The bank has tapped ING Bank N.V. Manila Branch as the sole arranger, with BDO Unibank and ING as selling agents. BDO Capital and Investment Corp. is the financial advisor for the fund raising activity.

The last time BDO returned to the domestic bond market was in January, when it raised a record P63.3 billion from its bond issuance as retail and institutional investors swarmed the bank’s second foray into the ASEAN sustainability bond market after almost two years.

The amount was almost 12.7 times the original size of P5 billion, as the offer period was shortened by a week amid the rapid build-up in orders from retail and institutional investors.

The Sy-led bank also successfully raised P52.7 billion in January 2022 via the maiden issuance of peso-denominated sustainability bonds.

BDO, the largest bank in terms of total assets, loans, deposits and trust funds under management, has over 1,700 consolidated operating branches and more than 5,500 ATMs nationwide.

The lender’s net income rose by 12.2 percent to P18.5 billion in the first quarter from P16.5 billion in the same period last year on the back of sustained growth across its core businesses.