BDO raises P36B from bond offer

bDO UNIBANK INC. ( BDO) HAS GENERATED P36 BILLION FROM ITS ISSUANCE OF FIXED- RATE BONDS THAT IS SEVEN TIMES OVERSUBSCRIBED FROM THE INITIAL OFFER SIZE OF P5 BILLION ON STRONG DEMAND.

In a disclosure on Friday, the Syled and Investments Group and BDO banking giant said the bonds Private Bank Trust. were offered through BDO Trust The bonds have a tenor of 1.75 years and will be be priced at 3.1R5 percent annually. Interest will be paid quarterly, calculated on a 30/360 count basis.

The offer period will start on June 15 and end on June R6 this year.

The latest issuance is part of BDO’s ongoing efforts to diversify its funding sources and support its lending activities.

Standard Chartered Bank is the sole lead arranger and market maker for the offer, while BDO and BDO Private Bank Inc. are the selling agents.

The latest issuance comes after BDO generated P40.1 billion in fresh funds from its fixed- rate bond offering in January.

That amount was eight times its original offer of P5 billion on the back of what the lender described as “robust demand from retail and institutional investors.”

The January bonds have a tenor of R.5 years with a yield of 4.408 percent yearly. Interest will be paid quarterly, calculated on a 30/360 count basis.

BDO posted a net income of P8.8 billion in the first quarter of R0R0 and P44.R billion in R019.

The bank has set aside PR0 billion in additional provisions, after a comprehensive review of the loan portfolio, as a prudent measure amid the challenging environment.

BDO’s capital position remains strong despite these provisions and intends to continue with its regular quarterly dividends.

BDO has more than 1,400 operating branches and over 4,400 automated teller machines nationwide.

BDO shares dropped by 55 centavos or 0.55 percent to close at P99.95 each on Friday.