Business and Finance

BDO Raises PHP52.7 Billion In ASEAN Sustainability Bonds

BDO Unibank, Inc. (the “Bank”) successfully raised PHP52.7 billion worth of Peso-denominated Fixed-Rate ASEAN Sustainability Bonds under its PHP365 billion Bond Programme, more than 10 times the original offer of PHP5 billion on very strong demand from retail and institutional investors. This was achieved despite the offer period being shortened from January 21, 2022 to January 19, 2022.This is a new milestone for the Bank as it exceeds its previous record of PHP40.1 billion for a single bond issuance, and by far the largest issuance for any Philippine financial institution or company. This will also be the Bank’s first issuance of Peso-denominated Sustainability Bonds. The issue, settlement, and listing date is set for January 28, 2022.

The bonds have a tenor of two (2) years and a fixed rate of 2.90% per annum. Interest is payable quarterly, calculated on a 30/360 basis. The net proceeds of the issue are intended to diversify the Bank’s funding sources, and finance/refinance eligible assets under the Bank’s Sustainable Finance Framework.

Standard Chartered Bank was the Sole Arranger, while BDO Unibank, Inc, BDO Private Bank, Inc., and Standard Chartered Bank were the Selling Agents of the issue. BDO Capital & Investment Corporation was the Financial Advisor of the issue.

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