BDO Unibank, Inc. saw strong demand for its latest offshore issuance, allowing it to raise $600 million via the fixed rate notes to fund the bank’s dollar-denominated projects.
BDO said in a filing with the local bourse on Tuesday that it issued $600 million in long-term dollar-denominated notes from total orders worth $2.9 billion, or nearly five times the offered amount.
The debt notes have a tenor of 5.5 years and a coupon rate of 2.125% per annum. Moody’s Investors Service gave the issue a rating of Baa2.
“The senior note issue is part of the bank’s liability management initiatives to tap longer-term funding sources to support dollar-denominated projects,” the statement read.
BDO’s issuance was part of its $5-billion euro medium-term note program.
The notes will be listed on Singapore Exchange Securities Trading Ltd.
Standard Chartered Bank served as sole global coordinator for the issuance, while Standard Chartered Bank and Merrill Lynch (Singapore) Pte. Ltd. were the joint bookrunners and lead managers for the transaction.
The issuance came just a week after the Sy-led lender raised P36 billion on Friday via 1.75-year peso-denominated bonds. The debt papers fetched a coupon of 3.125%
In January, BDO also raised P40.1 billion from 2.5-year bonds, higher than the initial P5-billion offer due to strong demand.
The Sy-led bank’s net income dropped 10.2% in the first quarter from a year ago to P8.8 billion on weak market conditions.
Shares in BDO closed at P98 apiece on Tuesday, up 0.51% or by 50 centavos from Tuesday’s close of P99.30 each. — BML