BDO Unibank, the Philippines' largest bank, has successfully concluded a major international bond offering that demonstrated strong global investor confidence in the institution.
Record Demand for Philippine Banking Giant
The bank priced US$500 million in five-year fixed-rate senior notes, with the offering generating overwhelming interest from international investors. Total orders reached approximately USD1.6 billion, representing an oversubscription rate of more than 3.2 times the initial offer size.
This robust demand highlights the international investment community's strong appetite for quality Philippine financial instruments and reflects confidence in BDO's market position and financial stability.
Financial Terms and Settlement Details
The newly issued notes carry a 4.375 percent coupon rate and are expected to receive a Baa2 rating from Moody's Investors Service. This investment-grade rating underscores the bank's creditworthiness and financial strength in the global market.
Settlement for the bond offering is scheduled for December 3, 2025, when the transaction will be formally completed and funds transferred to the bank.
Strategic Funding for Growth Objectives
According to BDO, this bond issuance forms an integral part of its comprehensive liability management strategy. The proceeds will be utilized to secure longer-term funding that will support the bank's lending activities and general corporate purposes.
This strategic move enables BDO to lock in favorable financing terms while strengthening its capacity to support economic growth through increased lending to businesses and consumers across the Philippines.
The transaction was managed by a consortium of international financial institutions. Standard Chartered Bank served as the sole global coordinator, while Standard Chartered, MUFG, and Wells Fargo Securities acted as joint bookrunners and lead managers for the offering.
