2019 February - BDO Unibank, Inc., the country’s largest bank*, successfully raised P35 billion of fixed rate bonds, following a quick book-building process.

The bonds have a tenor of 1.5 years and bear a coupon rate of 6.42%, representing a 25 bps spread over the Bloomberg Valuation Service or BVAL benchmark. Interest will be paid quarterly, calculated on a 30/360 count basis. The bonds will be issued on February 11, 2019.

The bond issuance is part of BDO’s efforts to diversify its funding sources and support its business expansion, and is a component of an approved P100 billion Bond Program announced in August last year.

This marks another significant milestone for BDO as the transaction represents the largest ever single peso bond issuance by a Philippine bank, following the bank’s $150M Green Bond in 2018, its $1.2B stock rights offering in 2017, and its $700M Senior Note issuance, also in 2017, which is considered to be the largest Reg S dollar issuance by a Philippine bank to date.

Standard Chartered Bank acted as the Sole Arranger and Bookrunner for the issue, while BDO Capital & Investment Corporation, BDO Private Bank, Inc., and BDO Unibank, Inc. served as the selling agents.

*as of June 30, 2018 in terms of total assets, loans, deposits, and trust funds under management based on published statements of condition

A PHILIPPINE BANKING MILESTONE. BDO raised P35 billion of fixed rate bonds, which were issued on February 11, 2019. This is the biggest ever single peso bond issuance by a Philippine bank, a new milestone for the country’s largest bank.

In the photo are (from left to right): Ma. Theresa Ravalo, Officer-in-Charge of the Philippine Dealing System (PDS) Holdings Corp.; Lynette Ortiz, CEO of Standard Chartered Bank Philippines; Dalmacio Martin, EVP and Treasurer of BDO Unibank, Inc.; and Antonino Nakpil, President and COO of Philippine Dealing & Exchange Corp. (PDEx).