BDO Unibank Inc., or BDO, secured its biggest single bond issuance so far, with a P63.3-billion sale of its second batch of ASEAN Sustainability Bonds.

In a report to the Philippine Stock Exchange on Monday, BDO said this is twelve times higher than the initial offer of P5 billion, and the P52.7 billion proceeds from the first batch of its ASEAN Sustainability Bonds issued in January 2022.

“The issuance was backed by strong demand from retail and institutional investors, with a rapid build-up in orders resulting in the shortening of the offer period by a week to 16 January 2024,” BDO said.

The peso-denominated bonds have a coupon rate of 6.025 percent and a maturity of one and a half years. The issue, settlement, and listing date is slated on 29 January.

The Sy-owned BDO said the proceeds will be used to accelerate its sustainability projects under the BDO Sustainable Finance Framework.

This covers renewable energy, energy and water efficient buildings, less polluting transportation, recycling, sustainable and smart agriculture, and livelihood for micro, small and medium entrepreneurs.

ASEAN goals backed

The BDO framework supports the goals of the Association of Southeast Asian Nations or ASEAN to improve the lives of poor communities and ensure sustainable growth of industries through climate change mitigation measures.

The United Nations Intergovernmental Panel on Climate Change says Southeast Asian countries could lose $97.3 billion in this decade if the shift from dirty fuels to renewable energy is delayed.

In September 2022, BDO said it was targeting to reduce exposure to coal-powered plants by 50 percent by 2033.

The Bangko Sentral ng Pilipinas reported universal banks in mid-2022 already approved sustainability loans worth over P830 billion.