BDO to raise P5 billion via sustainability bonds

MANILA, Philippines — BDO Unibank Inc. is raising at least P5 billion as it returned to the domestic debt market via the issuance of peso-denominated fixed-rate sustainability bonds.

The country’s largest bank has started offering the 1.5-year bonds with a coupon rate of 6.025 percent per annum.

For a minimum investment amount of P500,000, with additional increments of P100,000 thereafter, investors can buy the bonds until Jan. 22. Listing on the Philippine Dealing & Exchange Corp. (PDEx) is on Jan. 29.

“BDO reserves the right to amend the terms and the timing of the issuance as it deems necessary,” the bank said.

The bank has tapped Standard Chartered Bank as the sole arranger, with BDO Unibank and Standard Chartered Bank as selling agents. BDO Capital and Investment Corp. is the financial advisor for the fund raising activity.

“The net proceeds of the latest issuance will be used to diversify the bank’s funding sources, and finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework,” the bank said.

The last time BDO tapped the domestic bond market was in January 2022 where it successfully raised P52.7 billion via the maiden issuance of peso-denominated sustainability bonds due this month.

The bank continues to tap the debt market depending on market demand.

BDO has a P365 billion bond program in place, which allows it to offer peso-denominated securities from time to time as it deems necessary.