BDO Unibank, Inc. announced on Monday that it is starting its offer of P5 billion worth of Peso-denominated Fixed-Rate ASEAN Sustainability Bonds.
This is the first time that the bank will be issuing a Peso-denominated Sustainability Bond to both institutional and retail investors. It is, meanwhile, the bank’s third issuance under its P365-billion bond program.
The bank said the bonds will have a tenor of two years and a fixed rate of 2.9 percent per annum. Interest is payable quarterly, calculated on a 30/360 basis. The minimum investment amount is P500,000 with increments of P100,000.
According to BDO, the net proceeds of the issue are intended to diversify the Bank’s funding sources, and finance or refinance eligible assets under the Bank’s Sustainable Finance Framework.
The offer period will run from January 10 to January 21, 2022, while the issue, settlement, and listing date is set for January 28, 2022. The bank reserves the right to adjust the timing of the offer as appropriate.
Standard Chartered Bank is the Sole Arranger, while BDO Unibank, Inc, BDO Private Bank, Inc., and Standard Chartered Bank are the Selling Agents of the proposed issue.
BDO Capital & Investment Corporation is the Financial Advisor of the proposed issue.
December 2021, the bank announced their plans to issue this peso-denominated sustainability bond to diversify its funding sources.
The Bank had previously issued a $150-million green bond in 2017, with the International Finance Corporation (IFC) as the sole investor.
Just last month, the Bangko Sentral ng Pilipinas (BSP) urged banks to support the country’s energy transition and shift to mainstream sustainable finance in an effort to “climate-proof” the local financial statement.
BSP governor Benjamin Diokno said banks should take on the green and sustainable path and lead supervised entities by example.
“We have started integrating sustainability principles in our investment process with over $550-million investment in the Green Bond Fund managed by the Bank for International Settlements,” the governor said.
Image credits: Nonoy Lacza