BDO taps market anew with P5-B bonds

Sy Family-led BDO Unibank, Inc. is looking to raise at least P5 billion from the public offer of its new peso-denominated fixed-rate sustainability bonds. 

The offering will be its fifth peso-denominated ASEAN Sustainability Bond and builds on the P286.7 billion the bank has raised from four similar issuances since January 2022.

The bank informed the local bourse on Wednesday that Securities and Exchange Commission (SEC) has confirmed that the proposed issuance complies with ASEAN Sustainability Bond Standards and the SEC’s ASEAN Sustainability Bond Circular.

The three-year bonds will carry a coupon rate of 5.7125 percent per year. The minimum investment is set at P500,000, with additional placements allowed in increments of P100,000, BDO said.

The offer period starts today, 7 January to 19 January, with issuance, settlement, and listing scheduled for 26 January. 

BDO said proceeds from the bond sale will support its lending activities, diversify funding sources, and finance or refinance eligible assets under the bank’s Sustainable Finance Framework.

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 of the end of September, the company’s asset quality remained stable, with a 1.77-percent NPL ratio and 134-percent non-performing loan (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.