BDO readies another sustainability bond offer, eyes at least P5B

BDO Unibank Inc. is returning to the debt market with another sustainability bond offering, seeking to raise at least P5 billion to support sustainable financing initiatives and strengthen its funding base.

In a disclosure, the Sy-led bank said the planned offer marks BDO’s second sustainability bond issuance this year, following its P100-billion offering in January.

With the latest transaction, BDO said it would have raised a total of P386.7 billion through five sustainability bond issuances since January 2022.

Compliance confirmed

The bank noted that the Securities and Exchange Commission (SEC) had confirmed that the proposed issuance complies with the requirements under the Association of Southeast Asian Nations (Asean) Sustainability Bond Standards and the SEC Asean Sustainability Bond Circular.

The proposed bonds will carry a tenor of one-and-a-half years and offer a fixed coupon rate of 6.26 percent per annum.

Investors may subscribe with a minimum investment of P500,000, with additional placements accepted in increments of P100,000. The offer period runs July 9 to 21, while the issue, settlement and listing are scheduled for July 28.

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“The net proceeds of the proposed issuance will be used 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 bank also said it reserves the right to amend the terms and timing of the issuance if necessary.