BDO will use the bond market to finance eligible assets

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BDO Unibank Inc. on Tuesday revealed plans to issue 5 billion peso sustainable bonds allegedly to diversify funding sources.

In a statement, the listed bank said the peso-denominated fixed-rate financial instrument is the third issue of its 365 billion peso bond program.

“The net proceeds of the issue are intended to be used to diversify the Bank’s sources of financing and to finance and / or refinance eligible assets as defined in the” sustainable financing framework “of the bank,” the statement said. by BDO. BDO shares were up 1.36%, or P1.70, to P127 each amid the main index’s 0.82% drop on Monday. Its price-to-earnings ratio was 19.94.

The bank’s statement revealed that BDO had set the minimum investment for the proposed issue at P 500,000 with additional increments of P 100,000 thereafter. The instrument has an indicative duration of two years.

The offer period is scheduled from January 10 to January 21, 2022. The date of issue, settlement and listing is set for January 28, according to the bank. BDO said it could update the terms and timing of the transaction if necessary.

Standard Chartered Bank is the sole arranger of the proposed issue. BDO Unibank, BDO Private Bank Inc. and Standard Chartered are the selling agents while BDO Capital and Investment Corp. is the financial advisor of the transaction.

The proposed issue is the first durable bond denominated in peso to be issued by the bank to institutional and retail investors.

Previously, the bank issued a $ 150 million “green” bond in 2017 with International Finance Corp. as the sole investor.

BDO, the country’s largest bank by assets according to the central bank, nearly doubled its 9-month net profit to 32.4 billion pesos from 16.6 billion pesos year-on-year, thanks to the trade franchise and provisions standardized.

At the end of September, its capitalization stood at 422.3 billion pesos, with a Common Equity Tier-1 ratio of 13.8%.


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