BDO defers P5-billion bond offer due to virus

BDO Unibank Inc. announced that it has decided to delay its P5-billion fixed rate bonds issuance after the government placed the entire Luzon island under enhanced community quarantine due to the coronavirus disease 2019 (Covid-19) pandemic.

“The deferral will allow potential investors to reassess their investment and liquidity needs considering the expected short-term disruption in certain business activities,” the listed bank said.

BDO did not disclose any other information as to when will it push through with the offering.

In January, the bank said the P5-billion issuance is a component of the P100-billion bond program approved by its board in August 2018.

The 2.5-year bonds carry a 4.408-percent interest rate. Minimum investment is set at P100,000 with increments of P50,000 thereafter.

Offer period was from January 20 to January 24.

BDO tapped Hong Kong and Shanghai Banking Corp. as the sole lead arranger and bookrunner of the transaction.

Prior this, BDO issued fixed rate bonds amounting to P35 billion in February 2019.

BDO also said in an advisory on Wednesday that it will extend the deadline of payments for qualified Credit Card, Auto, Home, SME and Personal Loan customers with due dates of up to April 15 by 60 days following the community quarantine.

Some of BDO’s branches in Metro Manila were still open, but they are closing earlier at 3 p.m. in observance of the lockdown.

On Tuesday, the bank said that an employee from one of its operational offices in San Juan tested positive for Covid-19. Other workers who were exposed are currently on self-quarantine.

BDO, following this incident, disinfected affected office area and other common spaces as safety measure.

The firm ended 2019 with net income of P44.2 billion, 35.17 percent higher than the P32.7 billion a year earlier on the back of robust core recurring income sources.

On Monday, BDO shares shed P17, or 13.39 percent, to close at P110 apiece amid the 7.92-percent dip for the main index.


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