Sy family-led banking giant BDO Unibank Inc. shortened the offer period for its third peso-denominated ASEAN Sustainability Bond issue, cutting it short by a few days due to strong demand from retail and institutional investors.
Initially scheduled to run from July 8 to 19, 2024, the offer period had closed early on July 16, the country’s biggest lender said in a stock exchange filing.
Big picture
Buyers are looking to lock in gains ahead of potential interest rate cuts in the latter part of the year, as signaled by the Bangko Sentral ng Pilipinas.
This marks the third time BDO is tapping the bond market in this category, with each offer raising more money than the previous one.
Bonds champion
BDO also shortened the offer period for its second ASEAN sustainability bond sale last January. That offer raised a historic high P63.3 billion, eclipsing San Miguel Corp.’s previous record of P60 billion.
The new ASEAN Sustainability Bonds have a tenor of 1.5 years with a coupon rate of 6.325 percent per annum. The issue, settlement, and listing date is set for July 24, 2024.
Proceeds will mainly finance and refinance eligible assets in BDO’s sustainable finance framework.
ING Bank NV, Manila Branch was the sole arranger. BDO and ING were the selling agents. BDO Capital & Investment Corp. was the financial advisor.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
