BDO Unibank Inc., the country’s largest lender, plans to raise fresh capital in the second half of the year through the issuance of fixed-rate peso bonds despite the high interest rate environment.
This marks the bank’s third peso-denominated sustainability bond following a P52.7-billion issue in January 2022 and P63.3-billion offering in January 2024.
BDO said in a disclosure to the stock exchange Monday it would issue at least P5 billion worth of bonds as third tranche from the peso-denominated sustainability bond.
The proposed issuance will have a tenor of one-and-a-half years and a coupon rate of 6.325 percent per annum.
The minimum investment amount is P500,000, with additional increments of P100,000 thereafter. The offer period will run from July 8 to 19, 2024, while the issue, settlement and listing date will be on July 24, 2024.
It said it would use the net proceeds to finance and/or refinance eligible assets as defined in the bank’s sustainable finance framework and diversify the bank’s funding sources.
The Securities and Exchange Commission (SEC) confirmed that the proposed issuance complies with the requirements set forth under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.
BDO said it reserves the right to amend the terms and the timing of the issuance as it deems necessary.
It tapped ING Bank N.V. Manila Branch as the sole arranger of the proposed issuance, with BDO Unibank and ING as the selling agents and BDO Capital & Investment Corp. as the financial advisor.
