The latest bond sale of Sy-led banking giant BDO Unibank Inc. had a warm reception from investors, raking in P55.7 billion to fund its sustainability efforts.
“The net proceeds of the issuance are intended to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework and diversify the bank’s funding sources,” BDO said on Wednesday.
BDO’s framework defines eligibility criteria in six green areas and two social areas.
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The green eligible categories are renewable energy; green buildings; clean transportation; resource efficiency and pollution prevention and control; environmentally sustainable management of living natural resources and land use; and sustainable water and wastewater management.
The eligible categories under the social areas are employment generation and food security.
The lender announced that its third Asean Sustainability Bond issuance was subscribed by more than 11 times, thanks to strong demand from both retail and institutional investors.
The offering, which had an original size of P5 billion, carries a tenor of 1.5 years and bears a coupon rate of 6.325 percent per annum.
The issue, settlement and listing date was on July 24.
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For this transaction, ING Bank N.V. Manila was tthe sole arranger and sustainability coordinator. BDO Unibank and ING acted as the selling agents while BDO Capital & Investment Corp. was the financial advisor.
BDO made its maiden green bond offering in January 2022, raising P52.7 billion.
In January this year, the bank secured P63.3 billion from the second tranche. This was the largest bond sale in the country, surpassing the P60 billion raised by San Miguel Corp. last year.
BDO saw its net earnings in the first quarter rise by 12 percent to P18.5 billion on the back of its growing lending portfolio.
Net interest income for the period climbed by 12 percent to P48.9 billion as customer loans increased by 13 percent to P2.92 trillion.