BDO UNIBANK, Inc. on Tuesday ended the public offer period for its third peso-denominated ASEAN Sustainability Bond issue, three days ahead of the original schedule, as it saw robust demand from the market.
“Originally set to run from July 8 to 19, 2024, the bank decided to close the offer period early, on July 16, 2024, following strong demand from both retail and institutional investors,” the Sy-led bank said in a disclosure to the stock exchange on Wednesday.
The bonds will still be issued, settled, and listed on July 24, BDO added.
The bank did not disclose the final amount raised from the sustainability bond offering.
BDO wanted to borrow at least P5 billion from the 1.5-year peso-denominated notes with an option to upsize.
The bonds carry a coupon rate of 6.325% per annum. They were offered for a minimum investment amount of P500,000 and in increments of P100,000 thereafter.
BDO earlier said it will use the issue’s proceeds to finance or refinance eligible assets under its Sustainable Finance Framework and diversify its funding sources.
The Securities Exchange Commission has confirmed that the issuance complies with requirements under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.
ING Bank N.V. Manila Branch was tapped as the sole arranger for the issuance. ING Bank is also a selling agent along with BDO.
Meanwhile, BDO Capital & Investment Corp. was appointed the financial advisor for the transaction.
BDO’s last issued ASEAN Sustainability Bonds in January, where the bank raised P63.3 billion, above the P5-billion target. The 1.5-year notes carry a coupon of 6.025% per annum.
It also borrowed P52.7 billion from its first ASEAN Sustainability Bond issue in January 2022.
BDO’s net income grew by 12.12% year on year to P18.5 billion in the first quarter as its core businesses remained strong.
Its shares dropped by 40 centavos or 0.29% to close at P139.40 apiece on Wednesday. — A.M.C. Sy
