BDO Unibank Inc. raised P55.7 billion from its third offering of peso ASEAN Sustainability Bonds, it said on Wednesday.
The bank’s offering of 1.5-year peso-denominated bonds was more than 11 times oversubscribed versus the initial P5-billion program, it said in a statement.
“The issuance was supported by strong demand from both retail and institutional investors that also prompted the early closing of the offer period on July 16,” BDO said.
“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,” the listed lender added.
The bonds are priced at a coupon rate of 6.325% per annum.
The offer period began on July 9 and was originally set to run until July 19. The papers were set to be issued, settled, and listed on Wednesday.
BDO sold the bonds at a minimum investment amount of P500,000 and in increments of P100,000 thereafter.
ING Bank N.V. Manila Branch was tapped as the sole arranger and sustainability coordinator for the issuance. ING Bank was also a selling agent along with BDO.
Meanwhile, BDO Capital & Investment Corp. was the financial advisor for the transaction.
The Securities and Exchange Commission earlier confirmed that the issuance complies with requirements under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.
BDO last issued ASEAN Sustainability Bonds in January, where the bank raised P63.3 billion, also above the P5-billion target for that offer. The 1.5-year notes have a coupon of 6.025% per annum.
It also borrowed P52.7 billion through its first ASEAN Sustainability Bond issue in January 2022. Proceeds of its first issuance funded 28 projects related to renewable energy, sustainable infrastructure, and water conservation, it earlier said. These also helped finance loans for 488,450 micro, small and medium enterprises and programs that generated employment.
BDO was the country’s largest bank in terms of total assets, with P4.38 trillion as of March, central bank data showed.
It has over 1,700 consolidated operating branches and more than 5,500 teller machines nationwide.
BDO’s net income grew by 12.12% year on year to P18.5 billion in the first quarter.
On Tuesday, BDO shares ended at P145.60 each. — Luisa Maria Jacinta C. Jocson
