Record high: BDO raises P100B from sustainability bonds
BDO Unibank Inc. has raised P100 billion from its latest sustainability bonds offer—the largest issuance of this kind by a Philippine bank—highlighting strong investor appetite for sustainability instruments.
In a disclosure statement on Monday, the Sy family-led bank said its fifth peso-denominated Asean (Association of Southeast Asian Nations) Sustainability Bond issuance was 20 times oversubscribed from the original offer size of P5 billion. This prompted BDO to close the offer period early on Jan. 16.
BDO said the demand came from a mix of retail and institutional investors, reflecting continued confidence in the bank and growing interest in sustainability-linked investments.
The bonds carry a tenor of three years and offer a fixed coupon rate of 5.7125 percent a year. The bonds were issued, settled and listed on Jan. 26.
With this latest offering, BDO has now raised a total of P386.7 billion from sustainability bonds across five issuances since January 2022.
The bank has been among the most active local issuers of sustainability-themed debt in the Philippine market over the past four years.
Proceeds from the bond sale will be used to support BDO’s lending activities, diversify its funding sources and finance or refinance eligible assets aligned with its sustainable finance framework. These assets include projects and loans that meet the bank’s environmental and social eligibility criteria.
Standard Chartered Bank served as the sole arranger for the transaction. BDO Unibank and Standard Chartered Bank acted as selling agents, while BDO Capital & Investment Corp. was the financial advisor.
The successful bond sale comes as banks increasingly tap the domestic debt market to fund loan growth while aligning with environmental, social and governance principles.
Sustainability bonds allow issuers to access a broader investor base, while signaling commitment to responsible financing practices.
BDO is the country’s largest bank in terms of total assets, loans, deposits and trust funds under management, based on its published statement of condition as of Sept. 30, 2025.
The bank operates one of the widest distribution networks in the Philippines, with more than 1,800 branches and nearly 5,900 teller machines nationwide.
