BDO UNIBANK, Inc. has raised P36 billion from fixed-rate bonds as part of its bid to diversify its funding sources.
The Sy-led lender said in a filing with the local bourse on Friday that the bond offer was over seven times oversubscribed versus the P5-billion program amid robust demand from individual and institutional investors.
“The latest bond issuance is part of BDO’s continuing efforts to diversify its funding sources and support its lending activities,” BDO said in a statement on Friday.
The bonds have a tenor of 1.75 years and carry a coupon rate of 3.125% per annum. Interest payment will be made quarterly, calculated on a 30/360 basis.
The offer period for the bonds began on June 15 and ended on June 26.
The bonds were exclusively offered through BDO Trust & Investments Group and BDO Private Bank Trust.
Standard Chartered Bank served as the sole lead arranger and market maker for the transaction. Meanwhile, BDO and BDO Private Bank, Inc. were the selling agents for the bonds.
In January, BDO raised P40.1 billion via bonds with a tenor of 2.5 years and a rate of 4.408% per annum. The papers were issued in February.
BDO’s net income dropped 10.2% to P8.8 billion in the first quarter from P9.8 billion a year ago as weak markets hit the bank’s investment portfolio.
BDO’s shares closed at P99.95 apiece on Friday, down by 55 centavos or 0.55% from the previous day. — LWTN