BDO raises P132 billion from sustainability bonds

MANILA, Philippines — BDO Unibank Inc. raised P132 billion from its sixth peso-denominated ASEAN Sustainability Bonds issuance, exceeding its original target by more than 26 times as investors continued to show strong appetite for sustainable debt instruments.

In a disclosure to the Philippine Stock Exchange, the Sy-led bank said the amount raised was significantly higher than the minimum offer size of P5 billion announced earlier this month.

BDO said the issuance was supported by strong demand from both retail and institutional investors. This also prompted the bank to close the offer period early on July 10, instead of the original schedule of July 9 to 21.

The latest bonds have a tenor of one-and-a-half years and carry a coupon rate of 6.26 percent per annum. The issue, settlement and listing date was set for July 28.

“The net proceeds of the issuance are intended to finance and/or refinance eligible assets as defined in the bank’s sustainable finance framework, support the bank’s lending activities and diversify the bank’s funding sources,” BDO said.

The fund raising marks BDO’s second sustainability bond issuance this year, following its P100-billion issue in January. Prior to the latest offer, BDO had raised P386.7 billion from five sustainability bond issuances since January 2022.

With the latest P132-billion issuance, BDO’s sustainability bond fund raising has reached P518.7 billion.

ING Bank N.V. Manila Branch served as the sole arranger and sustainability coordinator for the issuance. BDO and ING acted as selling agents, while BDO Capital & Investment Corp. was tapped as financial adviser.

Sustainability bonds are used to finance or refinance projects and assets that generate environmental and social benefits. For banks, these instruments also provide an alternative source of funding for lending activities while supporting sustainable finance commitments.

BDO remains the largest bank in the country in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of end-March.

The bank has the country’s largest distribution network, with almost 2,000 consolidated operating branches and more than 7,700 teller machines nationwide.

It also has 15 international offices, including full-service branches in Hong Kong and Singapore, across Asia, Europe, North America and the Middle East.