Philippine banking company BDO Unibank Inc., part of the Sy family conglomerate, has successfully raised P55.7 billion ($952 million) through its third peso-denominated ASEAN Sustainability Bond issue. The issuance was more than 11 times oversubscribed, exceeding the original P5 billion offer, the company said in a statement.
BDO said that the issuance was driven by strong demand from both retail and institutional investors, leading to the early closing of the offer period on July 16, 2024.
These bonds, with a 1.5-year tenor and a coupon rate of 6.325 percent per annum, will be settled and listed on July 24, 2024. The net proceeds will be used to finance or refinance eligible assets under the bank’s Sustainable Finance Framework and diversify its funding sources.
ING Bank N.V., Manila Branch acted as the Sole Arranger and Sustainability Coordinator, with BDO and ING serving as the Selling Agents, and BDO Capital & Investment Corporation as the Financial Advisor.
The Securities and Exchange Commission (SEC) confirmed that the issuance complies with the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.
This marks BDO’s third peso-denominated sustainability bond, following issues of P52.7 billion ($900 million) in January 2022 and P63.3 billion ($1 billion) in January 2024.
In January 2024, BDO significantly increased its second ASEAN Sustainability Bond issue, raising P63.3 billion—more than 12 times the original P5 billion offer—due to strong demand from retail and institutional investors. The overwhelming interest led to the offer period being shortened by a week to January 16, 2024.