BDO UNIBANK, Inc. is set to raise up to P5 billion through its second ASEAN Sustainability Bond issuance of the year. The bank announced the offering on Thursday, with 1.5-year bonds carrying a coupon rate of 6.26% per annum.
The offer period for the bonds will run until July 21, although the bank reserves the right to adjust this timeline. The issuance, settlement, and listing of the bonds are scheduled for July 28. The minimum investment amount is P500,000, with additional increments of P100,000.
The net proceeds from the bond issuance will be used to finance or refinance eligible assets, as defined in the bank's sustainable finance framework. This will also support the bank's lending activities and diversify its funding sources. The bank has confirmed that the proposed issuance complies with the requirements set forth under the ASEAN Sustainability Bond Standards.
The bank has appointed a sole arranger and sustainability coordinator for the issuance, with BDO and the arranger acting as selling agents. A financial advisor has also been engaged to oversee the process. This marks the bank's second foray into the domestic debt market this year, following a successful ASEAN Sustainability Bond issuance in January that raised P100 billion.
The January issuance was priced at a coupon rate of 5.7125% per annum and saw strong demand, with the total amount raised being five times the initial target. This upcoming issuance is BDO's fifth ASEAN Sustainability Bond issuance since January 2022, with the bank having raised a total of P386.7 billion through these papers.
BDO reported a 2.07% year-on-year increase in attributable net income to P20.112 billion in the first quarter. The bank's shares closed at P123 apiece on Thursday, following a decline of P3.40 or 2.69% from the previous day's close.
