Home Economy BDO looks to raise at least P5B from sustainability bond issue

BDO looks to raise at least P5B from sustainability bond issue

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BDO UNIBANK, Inc. is looking to raise at least P5 billion from the sale of 1.5-year peso-denominated ASEAN Sustainability Bonds, it said on Monday.

Proceeds from the notes will be used to finance or refinance eligible assets under the bank’s Sustainable Finance Framework and diversify its funding sources, BDO said in a disclosure to the stock exchange.

This marks its third peso-denominated sustainability bond issue, it added.

The bank has the option to upsize the issuance, it said.

The 1.5-year bonds carry a coupon rate of 6.325% per annum.

BDO is offering the bonds at a minimum investment amount of P500,000 and in increments of P100,000 thereafter.

The offer period began on Monday and is set to run until July 19, unless adjusted by the lender.

The bonds will be issued, settled, and listed on July 24, BDO added.

ING Bank N.V. Manila Branch was tapped as the sole arranger for the issuance. ING Bank is also a selling agent along with BDO.

Meanwhile, BDO Capital & Investment Corp. was appointed the financial advisor for the transaction.

BDO said the Securities and Exchange Commission (SEC) has confirmed that the issuance complies with requirements under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.

The bank in January raised P63.3 billion from its second offering of ASEAN Sustainability Bonds, above the P5-billion target, amid strong investor demand. The 1.5-year notes carry a coupon of 6.025% per annum.

It also borrowed P52.7 billion from its first ASEAN Sustainability Bond issue in January 2022.

BDO’s net income grew by 12.12% year on year to P18.5 billion in the first quarter as its core businesses remained strong.

Its shares went up by P6.20 or 4.47% to close at P145 each on Monday. — A.M.C. Sy

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