BDO Unibank, Inc. launched Monday its latest peso-denominated, fixed-rate sustainability bonds that would raise at least P5 billion for the Philippines’ largest lender by assets and a listed banking affiliate of the Sy Group.
This bond issuance will mark BDO’s third peso-denominated sustainability bonds, following successful issuances of P52.7 billion in January 2022 and P63.3 billion in January 2024.
The Securities and Exchange Commission has given the green light to BDO’s proposed bond, underscoring the debt issues compliance with the stringent requirements outlined under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.
BDO has set a coupon of 6.325 percent for the one-and-a-half years bond that will require a minimum investment P500,000, with subsequent increments of P100,000. The offer period runs from July 8 to 19, while the issuance, settlement, and listing date on the Philippine Dealing and Exchange Corp. is set for July 24, 2024.
The net proceeds generated from this issuance will be allocated towards financing and/or refinancing eligible assets defined in BDO’s Sustainable Finance Framework, aimed at diversifying the bank’s funding sources and supporting its sustainable growth initiatives.
ING Bank N.V., Manila Branch is the sole arranger of the bond, with BDO Unibank, Inc. and ING also serving as the selling agents. BDO Capital & Investment Corp. is the financial advisor in this transaction.
This initiative underscores BDO’s commitment to sustainable finance and its strategic approach to leveraging the capital markets to support environmentally and socially responsible initiatives while ensuring robust financial performance.
