In a significant move to bolster its financial resources, BDO Unibank Inc., the Philippines' largest bank, has successfully raised $500 million through an offshore sale of fixed-rate notes. The transaction highlights strong international investor confidence in the bank's credit standing.
Strong Investor Demand for BDO Notes
The bank announced that the sale of its five-year fixed-rate senior notes was met with overwhelming demand. The offering was more than 3.2 times oversubscribed, with total orders reaching approximately $1.6 billion. This robust response allowed BDO to secure favorable terms for the issuance.
The notes were issued under the bank's established Medium Term Note (MTN) Program. They carry an annual coupon rate of 4.375% and are expected to receive a 'Baa2' rating from Moody's Investors Service. This rating indicates a moderate level of credit risk. The settlement for the transaction is scheduled for December 3, 2025.
Purpose and Management of the Funds
According to BDO, this fundraising initiative is a key part of its liability management strategy. The primary goal is to tap into longer-term funding sources to support the bank's core operations.
The proceeds from the senior notes issue will be used for two main purposes:
- To support BDO's expanding lending operations across the country.
- For general corporate purposes, providing the bank with greater financial flexibility.
Banking Consortium Behind the Deal
A consortium of international banks facilitated the successful transaction. Standard Chartered Bank served as the sole global coordinator for the deal. Furthermore, Standard Chartered Bank, MUFG, and Wells Fargo Securities acted as the joint bookrunners and joint lead managers, ensuring the smooth execution of the offshore bond sale.
This successful capital raise reinforces BDO's strong position in the market and provides it with substantial funds to fuel future growth and continue supporting the Philippine economy through its lending activities.
