BDO Raises P132 Billion From Sustainability Bonds, Exceeding Target

MANILA, Philippines — BDO Unibank Inc. has successfully raised P132 billion from its sixth peso-denominated ASEAN Sustainability Bonds issuance, significantly exceeding its original target by more than 26 times, underscoring a robust investor appetite for sustainable debt instruments. In a disclosure to the Philippine Stock Exchange, the Sy-led bank announced that the amount raised substantially surpassed the minimum offer size of P5 billion initially set for the issuance. BDO stated that the issuance garnered strong demand from both retail and institutional investors, leading to the early closure of the offer period on July 10, ahead of its original schedule of July 9 to 21. The newly issued bonds carry a tenor of one-and-a-half years with a coupon rate of 6.26 percent per annum. The issue, settlement, and listing date are scheduled for July 28. "The net proceeds of the issuance are intended to finance and/or refinance eligible assets as defined in the bank’s sustainable finance framework, support the bank’s lending activities and diversify the bank’s funding sources," BDO explained. This marks BDO's second sustainability bond issuance this year, following a P100-billion issue in January. Prior to this latest offer, BDO had already raised P386.7 billion from five previous sustainability bond issuances since January 2022. With the P132-billion issuance, BDO's total fundraising from sustainability bonds has now reached P518.7 billion. ING Bank N.V. Manila Branch served as the sole arranger and sustainability coordinator for the issuance. BDO and ING acted as selling agents, while BDO Capital & Investment Corp. was appointed as the financial adviser. Sustainability bonds are financial instruments used to fund or refinance projects and assets that deliver environmental and social benefits. For banks, these instruments also offer an alternative funding source for their lending activities while simultaneously supporting their sustainable finance commitments. BDO remains the largest bank in the Philippines in terms of total assets, loans, deposits, and trust funds under management, as per published statements of condition as of end-March. The bank boasts the country's largest distribution network, with nearly 2,000 consolidated operating branches and over 7,700 ATMs nationwide. It also operates 15 international offices, including full-service branches in Hong Kong and Singapore, across Asia, Europe, North America, and the Middle East.