BDO targets to raise at least P5 billion from offering of sustainability bonds

BDO UNIBANK, Inc. is targeting to raise at least P5 billion from its latest offering of peso sustainability bonds.

BDO on Wednesday kicked off its public offer of 1.5-year peso-denominated fixed-rate sustainability bonds, which is set to run until July 22, unless ended earlier by the bank.

“This marks the bank’s fourth peso-denominated sustainability bond following a P55.7-billion issue in July 2024, P63.3-billion issue in January 2024, and P52.7-billion issue in January 2022,” it said in a disclosure to the stock exchange.

“The net proceeds of the proposed issuance will be used to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework, support the bank’s lending activities, and diversify the bank’s funding sources,” BDO said.

The bonds are priced at a coupon rate of 5.875% per annum. BDO will sell the notes for a minimum investment amount of P500,000 and in additional increments of multiples of P100,000 thereafter.

The papers are scheduled to be issued, settled, and listed on the Philippine Dealing and Exchange Corp. on July 29.

ING Bank N.V. Manila Branch is the sole arranger and sustainability coordinator for the issuance. It is also acting as a selling agent along with BDO.

Meanwhile, BDO Capital & Investment Corp. is the financial advisor for the transaction.

The bank added that the Securities and Exchange Commission (SEC) has issued confirmation that the issuance complies with requirements under the ASEAN Sustainability Bond Standards and the SEC’s ASEAN Sustainability Bond Circular.

BDO’s net income rose by 6.49% to P19.7 billion in the first quarter on the back of the sustained performance of its core businesses.

Its shares went down by P1.20 or 0.78% to close at P153.40 each on Wednesday. — Aaron Michael C. Sy