Banco De Oro Unibank, Inc. (“BDO”) successfully closed yesterday its offer of Unsecured Subordinated Notes qualifying as Tier 2 capital (“T2”).

BDO closed the offer period on 15 June 2011 two days ahead of the original scheduled close of 17 June 2011, mainly due to oversubscription from various retail and institutional investors. Total orders reached close to Php10 billion. As such, BDO revised its indicative issue size from Php5 billion to at least Php8 billion.

The BDO T2 Notes were priced at 6.50 % p.a. and will have a maturity of 10 years and 3 months from issue date, with a call option exercisable by the Bank after 5 years. The issue date is set for 27 June 2011.

This transaction is the fourth successful issuance of Tier 2 Notes by BDO, meant to fund its expansion plans and enhance the Bank’s capital adequacy ratio, which stood at 14% as of 31 March 2011.
Deutsche Bank AG, Manila Branch (“DB”) and The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) acted as Joint Lead Arrangers, Joint Bookrunners and Selling Agents for the transaction. Multinational Investment Bancorporation (“MIB”) was also designated as selling agent and market maker, while BDO acted as limited selling agent for the transaction.

About BDO
BDO is a full-service universal bank that provides a complete array of industry-leading products and services to the retail and corporate markets including Lending (corporate, middle market, SME, and consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash Management, and Remittances. Through its subsidiaries, the Bank offers Leasing and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage, and Stock Brokerage services. BDO has one of the largest distribution networks, with over 700 operating branches and more than 1,400 ATMs, nationwide. As of 31 March 2011, BDO maintained its position as the country’s largest bank in terms of total resources, customer loans and total deposits, and had the second largest assets under management, based on published statements of condition. For more information, please visit www.bdo.com.ph.