BDO ends bond offer early on strong demand

MANILA, Philippines – BDO Unibank Inc. has ended the offer period for its sixth peso-denominated Association of Southeast Asian Nations (Asean) sustainability bonds ahead of schedule. This was after attracting strong demand from both retail and institutional investors, signaling continued appetite for fixed-income investments despite a lower interest rate environment.

In a disclosure on Monday, the Sy-led bank said it closed the offer on July 10, just a day after starting and more than a week earlier than the original July 9 to July 21 schedule.

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BDO’s latest Asean sustainability bonds will mature in one-and-a-half years and offer a fixed coupon rate of 6.26 percent a year. The issue, settlement and listing are scheduled for July 28.

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“The net proceeds of the issuance are intended to finance and/or refinance eligible assets as defined in the bank’s sustainable finance framework, support the bank’s lending activities and diversify the bank’s funding sources,” BDO said.

The early closure suggests investors continued to seek relatively higher-yielding fixed-income instruments from established issuers, particularly as banks tap the capital market to raise long-term funding for lending and sustainability-related initiatives.

BDO has been a regular issuer of sustainability bonds as it expands financing for projects that meet environmental and social objectives under its sustainable finance framework.

Such issuances also allow banks to broaden their funding base beyond traditional deposits while supporting sustainable economic activities.

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For the latest offering, ING Bank N.V., Manila Branch serves as the sole arranger and sustainability coordinator. ING and BDO are acting as selling agents, while BDO Capital & Investment Corp. is the financial adviser for the transaction.

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The bank did not disclose the total amount raised from the issuance in its filing.

BDO remains the country’s largest bank in terms of total assets, loans, deposits and trust funds under management based on published financial statements as of March 31, 2026.

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The bank has an extensive nationwide network of nearly 2,000 operating branches and more than 7,700 teller machines, alongside 15 international offices across Asia, Europe, North America and the Middle East.