A major financial institution is embarking on a significant initiative, aiming to secure at least P5 billion through the issuance of sustainability bonds. This move signals a deepening commitment to projects aligned with environmental and social responsibility.
The offering, consisting of three-year ASEAN Sustainability Bonds, recently entered its public offer period. Proceeds from this bond sale will be strategically channeled into bolstering the bank’s lending activities and diversifying its funding base.
Specifically, the funds will be dedicated to financing or refinancing projects that meet the criteria outlined in the bank’s established Sustainable Finance Framework. This framework ensures transparency and accountability in the allocation of resources.
Investors can anticipate a coupon rate of 5.7125% per annum, making these bonds an attractive option for those seeking stable returns. The minimum investment is set at P500,000, with subsequent investments possible in increments of P100,000.
The offering period is currently scheduled to conclude on January 19th, though the bank retains the flexibility to adjust this date. Issuance, settlement, and listing of the bonds are planned for January 26th on the Philippine Dealing and Exchange Corp.
Regulatory approval has been secured, with the Securities and Exchange Commission confirming the issuance’s adherence to both ASEAN Sustainability Bond Standards and related SEC circulars. This validation underscores the bank’s commitment to best practices.
Standard Chartered Bank is serving as the sole arranger for this transaction, alongside BDO itself as a selling agent. BDO Capital and Investment Corp. is providing financial advisory services, ensuring a smooth and efficient process.
This latest offering represents the bank’s fifth foray into the peso-denominated ASEAN Sustainability Bond market. Since January 2022, the bank has successfully raised a total of P286.7 billion through these types of bonds.
The bank’s previous sustainability bond issuance in July of last year exceeded expectations, raising P115 billion – a substantial amount that marked the largest peso bond issuance in the country to date. This demonstrates strong investor confidence.
The bank recently reported a 6.1% year-on-year increase in attributable net income for the third quarter, reaching P22.47 billion. This positive performance reflects the continued growth of its core business operations.
Nine-month earnings totaled P63.09 billion, representing a 4.07% increase compared to the same period the previous year. These results highlight the bank’s overall financial strength and stability.
Despite the positive financial news, the bank’s shares experienced a slight dip on Wednesday, closing at P143 apiece – a decrease of 60 centavos or 0.42%. This minor fluctuation occurred amidst the broader market activity.
