BDO Unibank Inc. has closed the offer period for its sixth peso-denominated Asean Sustainability Bonds issuance as strong demand led to oversubscription.
The country’s largest lender on Monday said that it ended the offering on July 10, just a day after announcing that it intended to raise at least P5 billion from a fresh sustainability bond issuance. The offer period was originally scheduled to end on July 21.
The bonds have a tenor of one-and-a-half years and a fixed coupon rate of 6.26 percent per annum. Issuance, settlement and listing of the bonds will be on July 28.
Proceeds are intended to finance or refinance eligible assets under BDO’s Sustainable Finance Framework, support the bank’s lending activities and diversify its funding sources.
The Sustainable Finance Framework outlines the criteria for projects that generate environmental and social benefits, including those aligned with Asean sustainability standards.
ING Bank N.V., Manila Branch served as the sole arranger and sustainability coordinator for the transaction. BDO and ING were the selling agents while BDO Capital & Investment Corp. served as the financial advisor.
The latest transaction was the bank’s second sustainability bond offering this year following a P100-billion issuance in January.
BDO shares dropped P1.20, or 0.97 percent, and closed at P123.00 each on Monday.
