BDO Unibank, Inc. (BDO) has officially launched the public offer for its latest Peso-denominated Fixed-Rate Sustainability Bond, marking a significant milestone in the bank's ongoing commitment to sustainable finance. This new issuance represents the fifth such bond in the ASEAN Sustainability Bond category, following a series of successful offerings that have collectively raised an impressive aggregate of P286.7 billion since January 2022.
Details of the New Sustainability Bond
The proposed bond has a minimum aggregate issue size of P5 billion, with a tenor of three years and a coupon rate set at 5.7125% per annum. Investors can participate with a minimum investment amount of PHP500,000, with additional increments available in multiples of PHP100,000. The offer period is scheduled to run from January 7 to 19, 2026, with the issue, settlement, and listing date set for January 26, 2026. BDO retains the right to adjust the terms and timing of the issuance as necessary to align with market conditions.
Utilization of Proceeds and Regulatory Compliance
The net proceeds from this bond issuance will be strategically used to support BDO's lending activities and diversify its funding sources. Specifically, the funds will be allocated to finance and/or refinance eligible assets as outlined in the bank's Sustainable Finance Framework. This approach ensures that the capital raised contributes directly to environmentally and socially responsible projects.
In a key development, the Securities and Exchange Commission (SEC) has confirmed that this proposed issuance fully complies with the stringent requirements set forth under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular. This regulatory endorsement underscores the bond's adherence to high standards of transparency and sustainability in the financial sector.
Strategic Partnerships and Advisory Roles
The issuance is being managed through a collaboration with leading financial institutions. Standard Chartered Bank has been appointed as the Sole Arranger, while BDO Unibank, Inc. and Standard Chartered Bank will serve as the Selling Agents. Additionally, BDO Capital & Investment Corporation will act as the Financial Advisor, providing expert guidance throughout the process. This team of experienced professionals aims to ensure a smooth and successful offering for investors.
This latest bond launch reinforces BDO's position as a leader in sustainable finance in the Philippines, building on its previous achievements and expanding its portfolio of green and social investments. By continuing to issue such bonds, the bank not only meets growing investor demand for ethical financial products but also contributes to broader national and regional sustainability goals.
