BDO Unibank Inc., the country’s largest lender, said Tuesday it raised a record P115 billion from its latest ASEAN Sustainability Bond offering, exceeding its original target of P5 billion.
The offering, the country’s largest corporate bond sale, was oversubscribed 23 times due to strong participation from both retail and institutional investors, BDO said in a disclosure to the stock exchange.
The 1.5-year bonds carry a fixed interest rate of 5.875 percent per annum.
BDO said it would use the proceeds to finance or refinance eligible assets under the bank’s Sustainable Finance Framework, support its lending activities and diversify its funding sources.
The bonds were listed on the Philippine Dealing & Exchange Corp. Tuesday.
BDO shortened the offer period for the bond sale to July 14 from the original schedule of July 9 to 22, citing strong investor demand.
ING Bank N.V. Manila Branch served as the sole arranger and sustainability coordinator for the transaction. BDO and ING acted as selling agents, while BDO Capital & Investment Corp. was the financial advisor.
This was BDO’s fourth ASEAN Sustainability Bond offering. It raised P52.7 billion in January 2022, P63.3 billion in January 2024 and P55.7 billion in July 2024 from similar issuances.
The bank reported Monday that its net income rose 3 percent to P40.6 billion in the first half of 2025 from P39.4 billion in the same period last year, led by strong performance across its core businesses.
The bank said earnings growth was “tempered by continuing investments in market coverage and IT spending for operational efficiency.”
BDO’s net interest income increased 7 percent, supported by a 14-percent growth in gross customer loans, which reached P3.4 trillion. This was fueled by double-digit expansion across all customer segments.
With an expanded loan portfolio, the bank set aside P7.3 billion as provision for impairment losses.
Second-quarter net income, however, was flat at P20.9 billion.
Be the first to comment