BDO returns to bond market, sets P5-B Asean sustainability debt sale

MANILA , Philippines  -BDO Unibank Inc., the country’s biggest bank, is targeting to raise at least P5 billion from the sale of Asean sustainability bonds.

This comes two years after a similar debt offer issued by the Sy-led lender was upsized 10 times due to strong demand from investors.

In a stock exchange filing on Tuesday, BDO said the bonds will have a tenor of 1.5 years with a coupon rate of 6.025 percent per annum.

The offer period will run from Jan. 9-22 this year while the target listing is set on Jan. 29 this year.

The minimum investment amount is P500,000 with added increments of P100,000 each.

“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,” BDO said in the filing.

In 2022, BDO raised P52.7 billion from its maiden Asean sustainability bond offer after raising the offer size from the original P5 billion.

READ: BDO green bond is PH’s largest corporate issue

According to the Securities and Exchange Commission, proceeds from the sustainability bonds will be used to finance environment and social projects.

Standard Chartered Bank was hired as the sole arranger of the proposed issuance, with BDO Unibank, Inc. and Standard Chartered Bank acting as selling agents. BDO Capital & Investment Corp. was tapped as financial advisor to the deal.

READ: BDO 9-month 2023 income up nearly 35% to P53.9B

BDO earlier booked a net income of P53.9 billion during the first nine months of 2023, putting it on course to eclipse record profits of P57.1 billion in 2022.

Profits during the period surged nearly 35 percent while return on common equity to 15.1 percent from 12.4 percent during the same period last year.