BDO Unibank Inc. raised P115 billion from its fourth peso-denominated Asean Sustainability Bond offering amid strong demand, with the sale more than 23 times oversubscribed from the initial P5 billion.
The offer period was initially scheduled to run from July 9-22 but robust demand prompted an early close on July 14, the bank told the stock exchange on Tuesday.
The bonds carry a tenor of one-and-a-half years with a coupon rate of 5.875 percent per year.
Net proceeds will be used “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 said.
ING Bank N.V., Manila Branch acted as the sole arranger and sustainability coordinator. BDO and ING also served as selling agents, while BDO Capital & Investment Corp. acted as financial advisor.
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On Monday, BDO reported a net income of P40.6 billion for the first half, up 3 percent from P39.4 billion a year ago and said to have been driven by the continued strength of its core businesses.
Gross customer loans expanded by 14 percent to P3.4 trillion while deposits grew by 8 percent to over P4.0 trillion.
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Net interest income rose 7 percent while non-interest income jumped 15 percent, bolstered by “significant contributions from fee-based income and income from insurance operations.”
BDO also reported improved asset quality in the period, with its non-performing loan (NPL) ratio down to 1.75 percent and NPL coverage remaining stable at 140 percent.
Despite geopolitical tensions and new US tariffs, the bank said the Philippines “is expected to remain resilient, supported by its consumer-driven economy and sustained domestic demand.”
BDO added it remained well-positioned to “manage emerging risks and capitalize on opportunities given its robust capital base and diversified business franchise.”
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BDO shares on Tuesday slipped by 50 centavos, or 0.34 percent, to close at P148.50 each amid a 0.85-percent drop for the benchmark Philippine Stock Exchange index.
