BDO secures three-year loan

Posted on August 07, 2015

BDO UNIBANK, Inc. has closed a $500-million multi-year syndicated term loan facility with regional and international banks, it said yesterday.

In a disclosure to the Philippine Stock Exchange, the Sy-led bank said the three-year deal with a diverse group of international banks attracted the interest of various parties, which caused the lender to borrow more than planned.

“The facility generated strong interest and was oversubscribed, prompting BDO to upsize it to $500 million from the initial tranche of $350 million,” it said.

The proceeds of the loan will be used “for refinancing of an existing term loan and for general banking and corporate purposes,” BDO said.

Bank of America, N.A., Deutsche Bank AG, Singapore Branch; The Hong Kong and Shanghai Banking Corporation (HSBC) Limited; Mizuho bank, Ltd.; Standard Chartered Bank; and United Overseas Bank Limited were the lead arrangers and bookrunners.

BDO shares closed at P103.6 each on Thursday, down 40 centavos or 0.38%.

Meanwhile, China Banking Corp. (China Bank), another Sy-led lender, yesterday said separately that its consolidated net income rose to P2.51 billion in the first half of the year on the back of the continued expansion of its main businesses.

The bank’s net profit for the period was up 14% from the P2.20 billion it booked during the same period last year.

Net interest income grew by 9% to P7.42 billion amid an increase in loans, while its non-interest income increased 4% to P2.05 billion, boosted by higher trading gains, commissions and branch-based fees.

Even as China Bank carried out its expansion program, growth in operating expenses -- excluding loan loss provisions -- was controlled at 25% to P3.16 billion, it noted.

The bank said its net earnings translated to an 8.67% return on equity, while return on assets was at 1.06%. Its total assets grew by 5% to P479.29 billion.

China Bank’s total capital funds as of end-June was at P58.81 billion, while its total capital adequacy ratio stood at 14.49%, still above the central bank’s 10% minimum requirement. Its common equity Tier 1 (CET1) ratio of 13.58% also exceeded the minimum CET1 ratio of 8.5%.

China Bank shares gained 10 centavos or 0.21% to end at P47.10 each yesterday. -- Imee Charlee C. Delavin