BDO raises P35 B via fixed rate bonds

BDO Unibank Inc. raised P35 billion as investors gobbled up its bond offering aimed at supporting the bank’s expansion and at the same time diversifying its funding sources.

The amount accounted for more than a third of its P100 billion bond program launched last August.

“The bond issuance is part of BDO’s efforts to diversify its funding sources and support its business expansion, and is a component of an approved P100 billion bond program announced in August,” BDO said.

Standard Chartered Bank acted as the sole arranger and bookrunner for the fund raising activity, while BDO Capital & Investment Corp., BDO Private Bank Inc., and BDO Unibank Inc. served as the selling agents.

This marks another significant milestone for BDO as the transaction represents the largest ever single peso bond issuance by a Philippine bank, following the bank’s $150 million Green Bond in 2018.

BDO raised P8.2 billion from the issuance of long-term negotiable certificates of time deposits (LTNCTDs) in May last year.

In 2017, the bank also raised P60 billion via stock rights offering and $700 million via the issuance of senior notes in the offshore debt market.

BDO has one of the largest distribution networks, with more than 1,200 operating branches and over 4,000 ATMs nationwide.

It also has full-service branches in Hong Kong and Singapore as well as 23 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.