BDO Unibank Inc., the country’s largest lender controlled by the Sy Group, said Monday it raised a record P63.3 billion in fresh capital from its second ASEAN Sustainability Bond sale.
This marks the country’s largest bond offering, exceeding the P60-billion previous record held by SMC Global Power Holdings Corp.
BDO said the issue was more than 12-times oversubscribed from its original offer of P5 billion on the back of strong demand from retail and institutional investors.
The rapid build-up in orders resulted in the shortening of the offer period by a week to Jan. 16, 2024.
The peso-denominated sustainability bonds bear a coupon rate of 6.025 percent and are due in 1.5 years.
BDO said it would use the net proceeds from the issuance to diversify the bank’s funding sources and finance/refinance eligible assets as defined in the bank’s sustainable finance framework.
BDO has a P365 billion bond program in place, which allows it to offer peso-denominated securities from time to time as it deems necessary.
The bank raised P52.7 billion from its maiden ASEAN Sustainability Bonds issue in January 2022.
Standard Chartered Bank served as the sole arranger, while BDO and Standard Chartered Bank were the selling Agents and BDO Capital & Investment Corp. was the financial advisor.
BDO’s stock rose P0.10 Monday to close at P144.90.
The bank booked a net income of P53.9 billion in the first nine months of 2023, up from P40.0 billion a year earlier, on broad-based growth across core businesses.
This resulted in a return on common equity (ROCE) of 15.1 percent, compared to 12.4 percent in the same period last year.
Net interest income increased to P137.4 billion, with customer loans growing 7.5 percent year-on-year to P2.7 trillion and deposits expanding 12 percent to P3.4 trillion.
Non-Interest Income settled at P57.9 billion, supported by various fee-based and treasury/FX businesses.
Pre-provision operating profit amounted to P80.6 billion, with revenue growth continuing to outpace cost growth.