BDO Unibank Inc. on Wednesday launched its fifth peso-denominated Asean Sustainability Bonds with a minimum aggregate size of P5 billion.
This followed four prior issuances made since January 2022 that raised a total of P286.7 billion for the Sy family-led bank.
BDO said the proceeds would be used to support lending activities and broaden its funding base.
“The net proceeds will … diversify funding sources and will be used and/or allocated by the bank to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework,” the bank said.
The Securities and Exchange Commission was said to have confirmed that the proposed issuance complied with both the Asean Sustainability Bond Standards and the regulator’s Sustainability Bond Circular.
The bonds have a tenor of three years and carry a fixed coupon rate of 5.7125 percent per year. The minimum investment was set at P500,000 and in increments of P100,000 thereafter.
The offer period, which started Wednesday, will run until Jan. 19. The issue, settlement and listing date will be on Jan. 26.
The bank said it retained the option to amend the terms or timing of the issuance if necessary, depending on market conditions.
Standard Chartered Bank is the sole arranger of the issuance and will also act as selling agent together with BDO, with BDO Capital & Investment Corp. acting as financial advisor for the transaction.
BDO shares on Wednesday dipped 60 centavos, or 0.42 percent, to close at P143.00 each.
NIÑA MYKA PAULINE ARCEO
