BDO’s P5-B ‘green’ bond offered until July 22
BDO Unibank Inc. is issuing sustainability bonds for the fourth time in as many years to support its various “green” projects.
The Sy family-led bank intends to raise at least P5 billion in this latest issuance, after seeing strong demand from investors the past three years.
The bank raised from green bonds P52.7 billion in January 2022, another P63.3 billion in January 2024 and P55.7 billion in July 2024.
According to BDO, proceeds from this year’s issuance will be used to fund eligible projects under its sustainable finance framework, support its lending activities and diversify 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 raised from the offer.
The offer period will run from July 9 to July 22, and issuance, settlement and listing are scheduled on July 29.
On Wednesday, the bank disclosed to the stock exchange that the notes would mature in one and a half years and carry a yield of 5.875 percent per year.
Lenders may invest a minimum of P500,000 and add in increments of P100,000.
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.
In June, the bank announced it had partnered with Ayala-led renewable energy firm ACEN Corp. to fund the latter’s onshore wind power project for P12.04 billion. This is 35-percent of the total P34.41-billion loan facility under a 15-year term.
The country’s largest lender booked a 7-percent growth in its earnings in the first quarter, which reached P19.7 billion, on its expanding loan book.
Net interest income grew by 6 percent to P47.8 billion, while noninterest income jumped by 21 percent to P18.6 billion.
BDO’s total outstanding loans grew by 12 percent, with corporate lending accounting for half of its P3.3-trillion loan portfolio.
