BDO Unibank, Inc. has officially commenced the public offering of its latest peso-denominated fixed-rate sustainability bonds. This marks a significant move by the country's largest bank to raise capital while supporting environmentally and socially responsible projects.
Key Details of the Bond Offering
The bank is targeting a minimum aggregate issue size of 5 billion Philippine pesos. This issuance represents BDO's fifth offering under the ASEAN Sustainability Bond standards, building on a substantial track record. Since January 2022, the bank has successfully issued a total of P286.7 billion in sustainability bonds across four prior offerings.
The bonds come with a three-year tenor and will carry a fixed coupon rate of 5.7125 percent per annum. For interested investors, the minimum investment amount is set at PHP 500,000, with additional increments allowed in multiples of P100,000 thereafter.
Timeline and Regulatory Approval
The public offer period is scheduled to run from January 7 to January 19, 2026. Following this, the issue, settlement, and listing date on the Philippine Dealing & Exchange Corp. (PDEx) is set for January 26, 2026. BDO has stated it reserves the right to adjust the timing and terms of the issuance if necessary.
This offering has received the green light from regulators. The Securities and Exchange Commission (SEC) has confirmed that the proposed bond issuance complies with both the ASEAN Sustainability Bond Standards and the corresponding SEC circular governing such instruments.
Use of Proceeds and Transaction Team
According to the bank's framework, the net proceeds from this bond sale will be used for a dual purpose: to support BDO's general lending activities and to diversify its funding sources. Crucially, the funds will be allocated to finance or refinance eligible assets as defined in the bank's own Sustainable Finance Framework. This ensures the capital is directed toward projects with positive environmental or social impact.
A consortium of financial institutions is facilitating the deal. Standard Chartered Bank has been appointed as the Sole Arranger. The selling agents for the offering are BDO Unibank, Inc. and Standard Chartered Bank, while BDO Capital & Investment Corporation is acting as the Financial Advisor.
The bonds are being issued as securities exempt from registration under the Securities Regulation Code, specifically citing section 9.1(e). This means they will not be registered with the SEC but are offered in compliance with the applicable rules for such exemptions.
