BDO prepares for offshore bond market comeback
Sy family-led BDO Unibank Inc. is targeting a return to the offshore bond market as it has tapped some banks to test investor appetite.
In a stock filing on Monday, the country’s biggest lender said it has mandated Standard Chartered Bank as the sole global coordinator, while MUFG and Wells Fargo Securities would serve as joint lead managers and joint bookrunners.
They are tasked to arrange a series of fixed-income investor calls beginning Nov. 24.
The bank expects to issue US dollar-denominated securities under “Regulation S”, with maturity in five years.
It also noted that the proposed debt paper has a credit rating of “Baa2” with a stable outlook from Moody’s, and “BBB-” from Fitch Ratings.
No target fundraising amount and timeline were disclosed.
In May 2022, the company raised $100 million from its maiden issuance of blue bonds through an investment from the International Finance Corp.
Even as the COVID-19 virus had hit globally, BDO also raised $600 million from the offshore bond market in July 2020.
Record earnings
Late last month, the company reported an uptick in its net income in the first three quarters on the back of a double-digit growth in its loan book to P3.5 trillion.
From January to September, BDO logged a profit of P63.1 billion, its highest nine-month figure, up 4 percent from a year ago.
This was as net interest income rose by 8 percent as gross customer loans grew by 14 percent.
BDO is optimistic that the country would remain “resilient” despite persistent trade tensions triggered by higher tariffs imposed by the United States, as well as controversial local issues hounding politicians and government offices.
“Meanwhile, the bank’s robust capital foundation and diversified business portfolio position it well to navigate current risks and capitalize on emerging growth prospects,” it said.
