BDO taps $500M syndicated loan

THE COUNTRY’S largest bank Banco de Oro Unibank (BDO) has raised $500 million from a three-year syndicated term loan facility – the largest fund-raising using such structure by the Philippine financial institution so far.

BDO intends to use the proceeds to refinance an existing term loan and for general banking and corporate purposes, the bank said in a press statement on Thursday.

The banking arm of the SM group said the facility had generated strong interest and was oversubscribed, prompting BDO to upsize the issuance from the initial tranche of $350 million.

The deal generated lending commitments from various lenders across the Americas, Europe, Asia and the Middle East.

Lead arrangers and bookrunners were Bank of America, N.A.; Deutsche Bank AG, Singapore Branch; The Hong Kong and Shanghai Banking Corp. (HSBC) Limited; Mizuho Bank, Ltd.; Standard Chartered Bank; and United Overseas Bank Limited.

BDO has one of the largest distribution networks among Philippine banks, with 899 operating branches and over 2,700 ATMs (automated teller machines) nationwide. It also has a branch in Hong Kong as well as 27 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

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