BDO shortens green bond offer period
BDO Unibank Inc. has ended the offer period of its sustainability bonds early, citing strong demand from both retail and institutional investors.
In a stock exchange filing on Tuesday, the Sy family-led bank said it had closed the offer period on July 14, with issue, settlement and listing still on July 29.
It was originally set to run until July 22.
The country’s largest lender intends to raise at least P5 billion from its fourth Asean (Association of Southeast Asian Nations) sustainability bonds, which will mature in one and a half years and carry a yield of 5.875 percent per annum.
Proceeds of the issuance are meant to fund or refinance eligible assets under BDO’s sustainable finance framework, support lending activities and diversify its funding sources.
Based on BDO’s sustainable finance framework, projects related to renewable energy, green buildings, clean transportation and pollution prevention may be funded using the proceeds.
For example, BDO last month partnered with ACEN Corp. to fund the Ayala-led renewable energy firm’s onshore wind power project for P12.04 billion, or 35 percent of the P34.41-billion loan facility. It will be under a 15-year term.
ING Bank NV Manila Branch is the sole arranger and sustainability coordinator of the issuance, while BDO and ING were selling agents. BDO Capital and Investment Corp. was the financial advisor.
This represents BDO’s fourth sustainability bond issuance following strong demand the past three years. It raised P52.7 billion in January 2022, another P63.3 billion in January 2024 and P55.7 billion in July 2024.
