BDO Unibank, Inc. has successfully raised P52.7 billion from the issuance of Peso-denominated Fixed-Rate ASEAN Sustainability Bonds under its P365 billion Bond Programme.
In a disclosure to the Philippine Stock Exchange, the bank said the amount it raised was more than 10 times the original offer of P5 billion due to very strong demand from retail and institutional investors.
“This was achieved despite the offer period being shortened from January 21, 2022 to January 19, 2022,” BDO said.
It added that, “This is a new milestone for the Bank as it exceeds its previous record of P40.1 billion for a single bond issuance, and by far the largest issuance for any Philippine financial institution or company.”
This will also be the Bank’s first issuance of Peso-denominated Sustainability Bonds. The issue, settlement, and listing date is January 28, 2022.
The bonds have a tenor of two years and a fixed rate of 2.90 percent per annum. Interest is payable quarterly, calculated on a 30/360 basis.
The net proceeds of the issue are intended to diversify the Bank’s funding sources, and finance or refinance eligible assets under the Bank’s Sustainable Finance Framework.
Standard Chartered Bank was the Sole Arranger, while BDO Unibank, Inc, BDO Private Bank, Inc., and Standard Chartered Bank were the Selling Agents of the issue. BDO Capital & Investment Corporation was the Financial Advisor of the issue.