BDO ends peso bond offer early amid strong demand

BDO UNIBANK, Inc. on Tuesday ended its offer for peso-denominated Association of Southeast Asian Nations (ASEAN) sustainability bonds amid strong demand from both retail and institutional investors, according to a stock exchange filing.

This is a week ahead of the scheduled close on Jan. 22, the Sy-led Philippine lender told the Philippine Stock Exchange on Wednesday.

BDO was looking at raising P5 billion from the one-and-a-half-year bonds, the proceeds of which will be used to “diversify the bank’s funding sources and finance and/or refinance eligible assets.”

The bonds were priced at a coupon rate of 6.025%, with a minimum investment amount of P500,000 that will increase by P100,000.

BDO said the bonds were still set to be issued, settled and listed on Jan. 29.

Standard Chartered Bank is the sole arranger of the notes and a selling agent along with BDO. BDO Capital & Investment Corp. was chosen as the financial adviser.

The bonds were the bank’s second peso-denominated sustainability bond offer after the P52.7-billion issue in January 2022. It was issued as the third tranche under BDO’s P365-billion bond program.

Proceeds from the previous issuance were used to diversify BDO’s funding sources and finance environmental and social projects.

The two-year debt was set at a fixed rate of 2.9%, with interest payable quarterly on a 30/360 basis.

BDO’s net income rose by 16.5% year on year to P18.7 billion in the third quarter amid higher interest income and lower provisions.

Its share price gained 0.07% or 10 centavos to close at P139.20 each. — Aaron Michael C. Sy