BDO raises P40B from landmark bond issue

Screengrab from www.bdo.com.ph

The country’s largest lender BDO Unibank Inc. has raised a landmark P40 billion from a new bond offering, the largest bond foray by a local bank in the domestic debt market in a single tranche.

BDO’s issuance was upsized by eight times the original offer of P5 billion, citing robust demand from retail and institutional investors.

The bonds will have a tenor of 2.5 years with a yield of 4.408 percent per annum. Interest will be paid on a quarterly basis.

The one-week offer period ended last January 24, 2020, with issue date set on February 3, 2020.

“The bond issuance is part of BDO’s continuing efforts to diversify its funding sources and support its lending activities, and follows the P35 billion of fixed rate bonds issued in February last year,” BDO told the Philippine Stock Exchange on Wednesday.

British banking giant HSBC Ltd. was the sole lead arranger for the issue, while BDO Unibank Inc., BDO Private Bank Inc., and HSBC were the selling agents.