BDO Unibank, Inc. has officially opened its latest public offering for peso-denominated Fixed-Rate Sustainability Bonds, marking a significant move to raise capital for its sustainable lending initiatives. The bank is targeting a minimum aggregate issue size of P5 billion for this issuance.
Details of the Fifth ASEAN Sustainability Bond
This marks BDO's fifth foray into the peso-denominated ASEAN Sustainability Bond market. The bank has been a major player in this space, having already issued a cumulative total of P286.7 billion through four previous bond offers since January 2022. The current bond series carries a three-year tenor and offers investors an annual coupon rate of 5.7125%.
Use of Proceeds and Investment Terms
The net proceeds from this bond offer are earmarked to bolster BDO's lending activities and diversify its funding sources. Specifically, the funds will be allocated to finance or refinance eligible assets as outlined in the bank's own Sustainable Finance Framework. For interested investors, the minimum investment amount is set at PHP500,000, with additional increments of PHP100,000 thereafter.
The offer period is scheduled from January 7 to January 19, 2026. Following this, the issue, settlement, and listing on the Philippine Dealing & Exchange Corp. (PDEx) is set for January 26, 2026. BDO has stated it reserves the right to adjust the terms and timing of the issuance if necessary.
Regulatory Approval and Key Partners
The Securities and Exchange Commission (SEC) has confirmed that this proposed bond issuance complies with the stringent requirements of both the ASEAN Sustainability Bond Standards and the relevant SEC circular. For this offering, Standard Chartered Bank acts as the Sole Arranger. The Selling Agents for the bonds are BDO Unibank, Inc. and Standard Chartered Bank, while BDO Capital & Investment Corporation serves as the Financial Advisor.
This latest issuance reinforces BDO's commitment to integrating environmental and social considerations into its financial operations, providing a viable investment channel for those looking to support sustainable projects while earning a fixed return.
