BDO UNIBANK, Inc. raised P40 billion from its offer of 2.5-year bonds. — BW FILE PHOTO

BDO UNIBANK, Inc. raised P40.1 billion from the fixed-rate bonds it sold last week, over eight times its initial offer of P5 billion.

In a filing with the local bourse on Wednesday, the Sy-led lender said the oversubscription of the papers which were offered from Jan. 20 to Jan. 24 was backed by “robust demand from retail and institutional investors.”

The bonds have a tenor of 2.5 years with a rate of 4.408% per annum paid quarterly, calculated on a 30/360 count basis.

The issue date for the papers is set on Feb. 3.

The Hongkong and Shanghai Banking Corp. Ltd served as the sole lead arranger as well as a selling agent for the papers. Other selling agents include BDO and BDO Private Bank, Inc.

“The bond issuance is part of BDO’s continuing efforts to diversify its funding sources and support its lending activities, and follows the P35 billion of fixed rate bonds issued in February last year,” the bank said in the filing.

The offer is the second tranche of the P100-billion bond program launched by BDO in August 2018 which is meant to raise fresh funds for the bank’s businesses.

In February 2019, BDO offered the first tranche of the fund-raising program through the P35 billion worth of peso-denominated 1.5-year fixed-rate bonds which have a coupon rate of 6.42% per annum payable quarterly until June this year. The interest for the said tranche is also calculated on a 30/360 count basis.

BDO’s net income climbed by 43.35% year on year to P11.967 billion in the third quarter of 2019 from P8.348 billion on the back of higher recurring core revenues.

This brought the bank’s bottom line for the first nine months of 2019 to P31.1 billion, 49.3% higher than the P21.5 billion it earned in the comparable period in 2018.

The bank’s shares closed at P154 apiece on Wednesday, up by 0.33% or 50 centavos from the Tuesday finish. — L.W.T. Noble