A flurry of activity began Monday, culminating in a significant financial maneuver for BDO. Intense discussions with investors paved the way for a new debt offering, designed to bolster the bank’s future growth.
The newly priced notes carry a coupon rate of 4.375% and are slated for settlement on December 3rd. This strategic move falls under BDO’s broader plan to secure long-term funding, vital for sustaining lending operations and supporting overall corporate objectives.
These notes are being issued through BDO’s established medium-term note program, a trusted avenue for raising capital. The bank anticipates a “Baa2” rating from Moody’s Ratings, aligning with its current issuer rating – a testament to its financial stability.
Standard Chartered Bank spearheaded the transaction as the sole global coordinator, demonstrating its confidence in BDO’s prospects. MUFG and Wells Fargo Securities joined as joint bookrunners and lead managers, amplifying the reach of the offering.
This isn’t BDO’s first venture into the international debt market. In May 2022, the bank successfully raised $100 million through a seven-year blue bond issuance, a landmark achievement as the first of its kind by a private sector entity in Southeast Asia.
The move comes on the heels of a strong financial performance. BDO reported a 6.1% year-on-year increase in attributable net income for the third quarter, reaching P22.47 billion. This brings the bank’s total profit for the first nine months to P63.09 billion, a 4.07% increase from the previous year.
Investor confidence in BDO was visibly reflected in Wednesday’s trading. Shares experienced a rise of P1.80, or 1.39%, closing at P131.50 apiece – a clear indication of positive market sentiment.
