BDO eyes P5B from second ASEAN sustainability bonds
BDO UNIBANK, Inc, (BDO) is looking at raising P5 billion from peso-denominated Association of Southeast Asian Nations (ASEAN) sustainability bonds, it said in a disclosure to the Philippine Stock Exchange on Tuesday.
Net proceeds from the bond would be used to diversify its funding sources and finance or refinance assets, the Sy-led Philippine lender said.
The one-and-a half-year notes will be priced at a coupon rate of 6.025% yearly. The minimum investment amount is P500,000 and will increase by P100,000.
BDO will offer the bonds from Jan. 9 to 22. The issue, settlement and listing date is on Jan. 29. The bank said it could amend the terms and timing of the issuance if needed.
BDO appointed Standard Chartered Bank as the sole arranger. BDO and Standard Chartered Bank are also the selling agents. BDO Capital & Investment Corp. was chosen as the financial adviser.
“This marks the bank’s second peso-denominated sustainability bond following a successful P52.7-billion issue in January 2022,” BDO said.
Proceeds from the previous issuance were used to diversify BDO’s funding sources and finance environmental and social projects.
BDO’s ASEAN sustainability bonds in January 2022 were heavily oversubscribed after a P5-billion original offer.
The two-year debt was set at a fixed rate of 2.9%, with interest payable quarterly on a 30/360 basis. It was also issued as the third tranche of BDO’s P365billion bond program.
BDO’s net income rose by 16.5% year on year to P18.7 billion in the third quarter amid higher interest income and lower provisions.
Its shares gained 0.98% or P1.30 to close at P133.60 each.