BDO raises P36 billion through fixed rate bonds sale

MANILA, Philippines — BDO Unibank Inc. on Friday finally raised P36 billion through the issuance of fixed rate peso-denominated bonds, proceeds from which will be used to finance loans to clients.

In a disclosure to the stock exchange, the Sy-led lender said the amount raised was more than seven times bigger than the original offer size of P5 billion.

The issuance was delayed from its original schedule in March due to work stoppage caused by the enhanced community quarantine enforced by President Rodrigo Duterte to control the spread of the coronavirus disease-2019 (COVID-19). 

According to the disclosure, interest charged on the bonds, gauged through a coupon rate, was at 3.125% per annum and will be paid quarterly. The debt papers will mature in 1.75 years.

"The latest bond issuance is part of BDO’s continuing efforts to diversify its funding sources and support its lending activities," the bank said.

The securities were offered exclusively through BDO Trust & Investments Group and BDO Private Bank Trust starting June 15 until June 26. For the offering, BDO hired Standard Chartered Bank as sole lead arranger and market maker.

BDO, the country's largest bank in total asset terms, is among the companies that have recently tapped the debt market to raise fresh funds as the pandemic hammered the local economy.

On Friday, shares in BDO were down 0.55% to end the week at P99.95 apiece. The main index was up 0.14%. — Ian Nicolas Cigaral