BDO sees sustainability bonds demand rising

BDO Unibank Inc. shortened the offer period for its third batch of peso-denominated ASEAN Sustainability Bonds due to overwhelming demand.

In a statement to the Philippine Stock Exchange on Wednesday, BDO ended the offer period on 16 July or ahead of the initial timeline of 8 to 19 July.

“The bank decided to close the offer period early, following strong demand from both retail and institutional investors,” BDO said.

BDO had announced the third ASEAN Sustainability Bonds would have a minimum aggregate value of P5 billion.

Assets refinancing

“The net proceeds of the issuance are intended to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework and diversify the bank’s funding sources,” BDO said.

The bonds will mature in one and a half years and carry a coupon rate of 6.325 percent per annum.

Investors can place a minimum investment of P500,000 and add more through increments of P100,000.

The bonds’ issue, settlement, and listing date is set on 24 July.

The BDO Sustainable Finance 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.