A surge of investor confidence propelled BDO Unibank’s latest bond offering to extraordinary heights, securing a remarkable P100 billion – twenty times the initial target. The demand was so intense, the offering period concluded early, signaling a powerful appetite for sustainable investments.
The bonds, officially designated as ASEAN Sustainability Bonds, quickly resonated with both individual and institutional investors. This overwhelming response underscores a growing trend towards financial instruments that prioritize environmental and social responsibility.
The funds generated will be strategically allocated to bolster BDO’s lending capabilities, diversify its funding streams, and crucially, finance projects aligned with its Sustainable Finance Framework. This commitment signifies a dedication to responsible growth and long-term value creation.
These three-year bonds offer investors a fixed annual coupon rate of 5.7125%, providing a stable and attractive return. The successful issuance and listing on the Philippine Dealing & Exchange Corp. mark a significant milestone for the bank and the local financial market.
This latest achievement brings BDO’s total capital raised through five ASEAN Sustainability Bond issuances since January 2022 to an impressive P386.7 billion. Each successive offering has demonstrated increasing investor enthusiasm and a deepening commitment to sustainable finance.
Standard Chartered Bank played a pivotal role as the sole arranger for this transaction, alongside BDO itself as a selling agent. BDO Capital and Investment Corp. provided crucial financial advisory services, ensuring a seamless and successful execution.
The scale of this bond issuance builds upon BDO’s previous success in July, where a P115 billion offering set a new record for the largest peso bond issuance in the country. This consistent performance highlights the bank’s ability to tap into significant capital resources.
Underpinning this financial strength is a robust performance across BDO’s core businesses. The bank reported a 6.1% year-on-year increase in attributable net income during the third quarter, reaching P22.47 billion.
This positive momentum translated into a nine-month earnings total of P63.09 billion, representing a 4.07% increase compared to the previous year. These figures demonstrate BDO’s sustained growth trajectory and financial resilience.
Reflecting investor confidence, BDO’s shares experienced a slight increase on Monday, closing at P138.20 apiece – a gain of 20 centavos. This positive market reaction further solidifies the bank’s position as a leading financial institution.
