BDO eyes at least P5B from sustainability bonds

BDO UNIBANK, Inc. wants to raise up to P5 billion via its second ASEAN Sustainability Bond issuance for the year, it said on Thursday.

The Sy-led bank on Thursday began an offering of 1.5-year bonds with a coupon rate of 6.26% per annum, it said in a disclosure to the stock exchange.

The offer period will run until July 21 unless adjusted by the bank, while issuance, settlement, and listing is scheduled on July 28.

The bonds are available for a minimum investment amount of P500,000, and in additional increments of P100,000 thereafter,

“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 Securities and Exchange Commission (SEC) has confirmed that the proposed issuance complies with the requirements set forth under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular,” it added.

BDO has mandated ING Bank N.V. Manila Branch (ING Bank) as the sole arranger and sustainability coordinator for the issuance, while BDO and ING Bank are acting as selling agents.

BDO Capital & Investment Corp. is the financial advisor.

This marks the bank’s second time tapping the domestic debt market this year after it raised P100 billion via ASEAN Sustainability Bonds in January. That issue was priced at a coupon rate of 5.7125% per annum, and the total amount raised was five times the initial target following strong demand.

This would also be BDO’s fifth ASEAN Sustainability Bond issuance since January 2022. The bank has already raised a total of P386.7 billion via these papers.

BDO’s attributable net income rose by 2.07% year on year to P20.112 billion in the first quarter.

Its shares closed at P123 apiece on Thursday, dropping by P3.40 or 2.69% from Wednesday’s finish. — Aaron Michael C. Sy