In a stock exchange filing on Monday, BDO announced plans to sell peso-denominated fixed-rate sustainability bonds worth P5 billion starting today.
Big picture
Sustainability bonds, which can be used to finance renewable energy or social housing projects, are popular among investors.
Indeed, it was through its January 2024 sustainability bonds issue that BDO raised a record breaking P63.3 billion.
In January 2022, BDO also raised P52.7 billion through the sale of sustainability bonds.
1.5-year tenor
“The Securities and Exchange Commission has confirmed that the proposed issuance complies with the requirements set forth under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular,” BDO said.
The bonds will have a proposed tenor of 1.5 years and a coupon rate of 6.325 percent annually. The shorter time horizon reflects broader market expectations that interest rates might come down in the latter half of 2024.
July offer
The offer period runs from July 8-19, 2024, while full payment and listing of the bond will be held on July 24.
The minimum investment amount is P500,000, with additional increments of P100,000 thereafter.
Major banks onboard
ING Bank N.V., Manila Branch was hired as the sole arranger of the proposed issuance, with BDO Unibank, Inc. and ING as the selling agents, and BDO Capital & Investment Corp. hired as financial advisor.
