BDO notes pricing draws heavy orders

Sy family-led BDO Unibank Inc. (BDO) has locked in longer-term funding at a fixed cost after pricing its $500-million, five-year Senior Notes at 4.375 percent per annum, a level that drew robust demand and generated an order book of about $1.6 billion.

In a disclosure on Wednesday, the bank said the offer, made under its Medium Term Note Program, was more than 3.2 times oversubscribed.

Rated ‘Baaa’ by Moody’s

The Senior Notes are expected to be rated “Baa2” by Moody’s, with settlement scheduled for 3 December.

BDO said the issuance supports its liability management strategy by enabling the bank to secure fixed-rate funding for its lending operations and general corporate purposes.

Standard Chartered Bank served as sole global coordinator, while Standard Chartered Bank, MUFG, and Wells Fargo Securities acted as joint bookrunners and joint lead managers.

Four percent increase in net income

From January to September, BDO posted a four percent increase in net income to P63.1 billion from P60.6 billion a year earlier, driven by strong performance across its core businesses and ongoing investments in technology and branch expansion.

As the year closes, the bank expects the local economy to remain resilient despite global trade pressures and domestic political uncertainties. Its solid capital base and diversified portfolio position it to manage risks and seize growth opportunities.

As of the end of September, the company’s asset quality remained stable, with a 1.77-percent NPL ratio and 134-percent NPL coverage.

Shareholders’ equity rose 10 percent, lifting book value per share to P116.42, while the CET1 ratio improved to 14.4 percent from 14.1 percent last year.