BDO raises PHP100 billion in oversubscribed sustainability bonds

MANILA, Philippines — BDO Unibank Inc said it raised 100 billion pesos (about $1.8 billion) from its fifth peso-denominated ASEAN Sustainability Bond issue, with demand reaching about 20 times the original 5 billion peso offer.

The Philippines’ largest lender said strong participation from retail and institutional investors led to the early close of the offer period on Jan. 16.

The latest issuance brings BDO’s total sustainability bond fundraising to 386.7 billion pesos across five offerings since January 2022.

The three-year bonds carry a coupon rate of 5.7125% per annum, with issue, settlement and listing set for Jan. 26, the bank said.

Proceeds will be used to support lending activities, diversify funding sources and finance or refinance eligible assets under BDO’s Sustainable Finance Framework.

Standard Chartered Bank acted as sole arranger. BDO Unibank and Standard Chartered served as selling agents, while BDO Capital & Investment Corp was financial advisor.