BDO sets new record with P132-B sustainability bond sale

Insider Spotlight

• Record deal: BDO raised P132 billion, the largest corporate bond sale in the Philippines. 
• Investor appetite: Demand topped the original offer by more than 26 times.
• Green financing: Proceeds will fund eligible sustainable projects and support lending.

The Sy family-led BDO Unibank has completed the largest bond issuance in its history, raising a record P132 billion from its sixth peso-denominated ASEAN Sustainability Bond offer after investor demand exceeded the original P5 billion issue by more than 26 times.

The fundraising surpassed the bank’s previous record P115 billion sustainability bond sale in 2025, which was then the largest corporate bond offering in Philippine history. 

Strong demand from both retail and institutional investors prompted BDO to close the offer period ahead of schedule on July 10, well before the original July 21 deadline.

BDO is the flagship banking arm of the SM Group, one of the country's biggest conglomerates with assets spanning real estate, retail and financial services, logistics and renewable power. 

Funds to support sustainable lending

The 1.5-year bonds carry a fixed coupon of 6.26 percent and were issued, settled and listed on July 28. BDO said the net proceeds will finance or refinance eligible assets under its sustainable finance framework, while supporting lending activities and diversifying its funding sources. 

The Securities and Exchange Commission earlier confirmed the issuance complies with the ASEAN Sustainability Bond Standards and the regulator’s sustainability bond rules. I

NG Bank N.V., Manila Branch served as the sole arranger and sustainability coordinator, while BDO and ING acted as selling agents and BDO Capital & Investment Corp. served as financial adviser.

—Edited by Miguel R. Camus