BDO Unibank Inc., the country’s largest lender by assets, has closed the offer period for its sixth peso-denominated ASEAN Sustainability Bonds ahead of schedule after attracting robust demand from both retail and institutional investors, signaling continued appetite for fixed-income investments despite a lower interest rate environment.
Originally scheduled to run from July 9 to 21, the offering ended on July 10 after the issue was fully subscribed, underscoring investor confidence in the country’s largest lender and growing interest in sustainable finance instruments.
The bonds carry a tenor of one-and-a-half years and offer a fixed annual coupon rate of 6.26 percent. The issue, settlement, and listing are scheduled for July 28.
BDO, the main banking unit of the SM Group, said the net proceeds will be used to finance or refinance eligible projects under its Sustainable Finance Framework, support lending activities, and further diversify the bank’s funding sources.
The early closure reflects the sustained appeal of short-dated debt securities that offer relatively attractive yields while allowing investors to gain exposure to environmental and socially oriented financing.
The issuance also highlights how sustainability-linked fundraising is becoming increasingly mainstream among Philippine financial institutions as banks seek to align capital raising with environmental, social, and governance objectives while broadening their investor base.
ING Bank N.V., Manila Branch, served as the sole arranger and sustainability coordinator for the transaction. BDO and ING acted as selling agents, while BDO Capital & Investment Corp. served as financial advisor.
The latest issuance reinforces BDO’s position as one of the country’s most active issuers of sustainable debt, tapping investor demand to support financing for projects that contribute to economic growth while advancing sustainability goals.
