Banco de Oro to redeem P10B in debt notes

Banco de Oro Unibank is raising up to $2 billion from an overseas debt facility to boost funds for long-term relending, including funding for big-ticket infrastructure projects under the government’s public-private partnership (PPP) program.

MANILA, Philippines—Banco de Oro Unibank will retire this November P10 billion worth of subordinated notes qualifying as Tier 2 capital that were issued in 2007.

BDO issued a notice to holders of these Tier 2 notes that the bank would exercise its right to redeem the notes on November 21.

All of the notes will be redeemed in whole for cash at a redemption price equal to the face value of the notes plus accrued interest.

BDO, the largest bank in the country, is led by the family of the Philippines’ wealthiest man, Henry Sy, who also has interests in retailing, shopping mall development and real estate.