BDO raises P100 billion from sustainability bond offer

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January 27, 2026 | 12:00am

MANILA, Philippines — Sy-led BDO Unibank Inc. raised P100 billion from peso-denominated ASEAN sustainability bonds to support the bank’s lending activities and diversify its funding sources.

The fifth bond issuance was 20 times oversubscribed against the bank’s original offer of P5 billion.

BDO said it saw “robust” participation both from retail and institutional investors that prompted it to close the offer early on Jan. 16 instead of its earlier schedule of Jan. 19.

“The net proceeds are intended to support the bank’s lending activities and diversify funding sources and to finance and/or refinance eligible assets as defined in the bank’s Sustainable Finance Framework,” BDO said yesterday.

The bank’s latest bond issuance has a tenor of three years and a coupon rate of 5.7125 percent per annum. The issue, settlement and listing date of the bond is on Jan. 26.

Standard Chartered Bank acted as the sole arranger for the transaction. BDO and Standard Chartered Bank served as selling agents while BDO Capital & Investment Corp. acted as financial advisor.

The country’s largest lender has raised an aggregate of P386.7 billion in five issuances of its sustainability bonds since January 2022.

BDO has been actively tapping the sustainable finance market, leveraging investor appetite for ESG-aligned (environmental, social and governance) instruments amid growing interest in responsible investing.

The bank was able to raise a record P115 billion during its fourth issuance of the ASEAN sustainability bond, which was 23 times oversubscribed from the initial offer size of P5 billion.

The earnings of the country’s largest bank from January to September of last year rose by four percent to P63.3 billion on the back of the sustained performance of core business segments.

For the third quarter alone, BDO’s net income increased by 6.3 percent to P22.56 billion from P21.23 billion in the same quarter of 2024.