BDO eyeing P5 billion from 6th sustainability bonds Sy-led

MANILA, Philippines — BDO Unibank Inc. is returning to the domestic bond market to raise at least P5 billion from its sixth peso-denominated ASEAN Sustainability Bonds issue, as the country’s largest bank continues to diversify funding sources for sustainable finance and lending activities.

In a disclosure, the country’s largest lender said the fixed-rate sustainability bonds would have a minimum aggregate issue size of P5 billion, with a tenor of one-and-a-half years and a coupon rate of 6.26 percent per annum.

The offering marks BDO’s second sustainability bond issuance this year, following its P100-billion issue in January

Since January 2022, the Sy-led bank has raised P386.7 billion from five sustainability bond issuances.

“The net proceeds of the proposed issuance will be used 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 offer period will run from July 9 to 21, while the issue, settlement and listing date is set for July 28.

The minimum investment amount is P500,000, with additional placements in increments of P100,000.

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

BDO said it reserves the right to amend the terms and timing of the issuance as needed.