BDO raises P132B in landmark bond deal

BDO Unibank Inc. pulled in P132 billion from its latest sustainability bond offering, setting a new record as the single biggest corporate debt issuance in the Philippines.

The latest offering eclipsed the previous record of P115-billion sustainability bond deal likewise made by BDO last year.

The Sy-family led bank said on Tuesday that its sixth peso-denominated Association of Southeast Asian Nations sustainability bonds issuance was more than 26 times oversubscribed against its original offer of P5 billion, reflecting strong appetite from both retail and institutional investors.

The robust demand also prompted BDO to close the offer period ahead of schedule on July 10.

The sustainability bonds carry a tenor of 1.5 years and offer a fixed coupon rate of 6.26 percent per annum. Settlement and listing are scheduled for July 28.

“The net proceeds of the issuance are intended 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 latest fundraising underscores growing investor interest in sustainable financing instruments even as banks continue tapping the debt market to strengthen liquidity and expand lending capacity.

BDO said the transaction was backed by strong participation from both institutional and retail investors, enabling the bank to significantly increase the size of the offering from its initial plan.

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The early closure of the offer period highlighted strong reception to the issuance despite its relatively short tenor.

ING Bank N.V., Manila Branch served as the sole arranger and sustainability coordinator for the transaction.

BDO and ING acted as selling agents, while BDO Capital & Investment Corp. served as financial adviser.

The issuance forms part of BDO’s broader sustainable finance initiatives, which seek to channel capital toward projects and assets that deliver environmental and social benefits, while supporting the bank’s long-term growth strategy.