BDO eyes at least P5 billion via 4th sustainability bond issue

MANILA, Philippines — BDO Unibank Inc. is set to raise at least P5 billion through its latest peso-denominated sustainability bonds, marking its fourth issuance under the program.

The fixed-rate bonds carry a coupon of 5.875 percent per annum and a tenor of one-and-a-half years. The offer period will run from July 9 to 22, with the issue and settlement date scheduled for July 29.

Minimum investment is set at P500,000, with increments of P100,000 thereafter.

The Securities and Exchange Commission has confirmed that the issuance complies with the ASEAN Sustainability Bond Standards and relevant SEC circulars.

The country’s largest lender will use the proceeds from the offering to finance or refinance eligible assets aligned with BDO’s Sustainable Finance Framework. These include green and social projects such as renewable energy, energy efficiency, sustainable water and wastewater management as well as access to essential services.

The listed bank said the fundraising effort also supports its lending activities and broadens its funding base.

This latest issuance follows BDO’s previous sustainability bond offers amounting to P55.7 billion in July last year, P63.3 billion in January 2024 and P52.7 billion in January 2022. This marked BDO as one of the largest issuers of local-currency sustainability bonds in the Philippines.

ING Bank N.V. Manila Branch was tapped as the sole arranger and sustainability coordinator for the transaction, while BDO Unibank and ING will act as selling agents. BDO Capital & Investment Corp. is the financial advisor.

BDO said it reserves the right to adjust the terms or timing of the issuance depending on market conditions.

As of end-2024, the Sy-led bank has funded a total of P1.04 trillion in sustainable finance, the largest of any Philippine bank to date. This is higher by 15.8 percent than the P898 billion loans it disbursed in 2023.

The funds have been channeled into projects ranging from renewable energy and green infrastructure to water sanitation, micro-finance as well as gender-focused enterprise support.