BDO Unibank, Inc., the country’s largest lender, said Tuesday it plans to raise at least P5 billion from the issuance of peso-denominated fixed-rate sustainability bonds.
BDO said in a disclosure to the stock exchange it would use the net proceeds to diversify its funding sources and finance and/or refinance eligible assets defined in its sustainable finance framework.
This will be the bank’s second peso-denominated sustainability bond offering following the successful P52.7-billion issue in January 2022.
The new bonds will have a tenor of 1.5 years and carry a coupon rate of 6.025 percent per annum. The minimum investment amount is P500,000, with increments of P100,000 thereafter.
The offering will run from Jan. 9 to 22, 2024, and the bonds are expected to be listed on the Philippine Stock Exchange on Jan. 29, 2024.
BDO appointed Standard Chartered Bank as the sole arranger and lead underwriter for the issuance. Standard Chartered Bank will also act as a selling agent alongside BDO. BDO Capital & Investment Corp. will serve as the financial advisor.
