BDO Unibank Inc., the country’s largest lender controlled by the Sy Group, has successfully priced its USD500 million, five-year Fixed Rate Senior Notes, raising fresh medium-term funding to support its lending operations and liability management program.
The offering, part of BDO’s Medium-Term Note Program, drew robust investor appetite, generating an order book of approximately USD1.6 billion—more than 3.2 times the issue size. Market watchers say the strong take-up reflects sustained confidence in BDO’s credit strength and the Philippines’ improving visibility in global debt markets.
The notes, expected to be rated Baa2 by Moody’s, carry a 4.375 percent fixed coupon per annum. Settlement is slated for December 3, marking BDO’s latest successful return to the offshore bond market amid steady demand for high-quality Asian bank paper.
By issuing senior notes with a longer maturity, BDO is able to diversify its funding base and lock in stable financing to support general corporate purposes and its expanding loan portfolio. The move also gives the bank greater flexibility in managing liabilities amid shifting interest-rate conditions.
Standard Chartered Bank served as sole global coordinator, while Standard Chartered, MUFG, and Wells Fargo Securities acted as joint bookrunners and joint lead managers for the transaction.
The oversubscription underscores BDO’s position as a preferred credit among regional fixed-income investors, strengthening its ability to tap international markets as it scales lending activities across retail, corporate, and SME segments.
