BDO Unibank, Inc. successfully raised PHP100 billion in its fifth Peso-denominated ASEAN Sustainability Bonds issue—twenty times the original P5 billion offer—demonstrating robust investor appetite for green and sustainable debt.
The offer closed early on January 16, attracting both retail and institutional participants eager to back projects aligned with environmental and social goals.
The three-year bonds carry a coupon of 5.7125 percent per annum, with settlement and listing scheduled for January 26.
Net proceeds are earmarked for lending and refinancing eligible assets under BDO’s Sustainable Finance Framework, reinforcing the bank’s commitment to environmentally and socially responsible financing.
“This overwhelming response confirms the strong confidence investors have in BDO’s sustainable finance initiatives and underscores the growing market demand for green and social bonds in the Philippines,” said a bank spokesperson.
Since January 2022, BDO has raised a total of P386.7 billion through five sustainability bond issuances, signaling its leadership in the domestic sustainable debt market. Standard Chartered Bank served as Sole Arranger, while BDO Unibank and Standard Chartered acted as Selling Agents, with BDO Capital & Investment Corporation as Financial Advisor.
The massive oversubscription not only highlights investor trust in BDO’s creditworthiness but also reflects broader trends in ESG-focused capital markets. With interest in sustainable finance surging, banks like BDO can diversify funding sources at competitive rates while meeting increasing regulatory and corporate demand for green and social investments.
The bond sale is viewed as a barometer for the Philippines’ ESG market maturity. Despite relatively high yields, appetite remains strong, suggesting that institutional and retail investors are increasingly prioritizing impact alongside returns.
BDO, the country’s largest lender by assets, combines traditional and digital banking solutions across corporate, retail, and investment segments, cementing its position as a cornerstone of the Philippines’ financial sector.
