BDO raises PHP 115B in oversubscribed green bond sale

BDO Unibank Inc. successfully raised PHP 115 billion from its fourth peso-denominated ASEAN Sustainability Bond issuance, massively surpassing its initial target of PHP 5 billion and reflecting heightened investor confidence in green and sustainable finance.

The offering, which was initially scheduled to run from July 9 to 22, 2025, closed just four days after opening due to overwhelming demand from both retail and institutional investors.

The issuance was 23 times oversubscribed, according to the bank’s official statement.

The bonds carry a tenor of 1.5 years and a coupon rate of 5.875 percent per annum.

Settlement, issuance, and listing on the Philippine Dealing & Exchange Corp. (PDEx) are scheduled for July 29, 2025.

“The strong reception affirms investor confidence in BDO’s credit profile and commitment to sustainability,” the bank said.

Proceeds from the bond sale will finance or refinance eligible assets in accordance with BDO’s Sustainable Finance Framework.

These include green projects such as renewable energy, energy efficiency, and pollution prevention, as well as social initiatives like affordable housing and access to essential services.

The funding will also support the bank’s broader lending activities and help diversify its funding sources amid evolving market conditions.

ING Bank N.V., Manila Branch served as Sole Arranger and Sustainability Coordinator for the transaction.

BDO and ING acted as Selling Agents, while BDO Capital & Investment Corporation served as Financial Advisor.

This issuance is part of BDO’s PHP 365 billion Bond Program registered with the Securities and Exchange Commission (SEC), aligning with the ASEAN Green, Social and Sustainability Bond Standards developed by the ASEAN Capital Markets Forum.

BDO’s latest sustainability bond follows three earlier successful offerings and reinforces its role as one of the Philippines’ leading private-sector issuers of ESG-aligned debt instruments.

According to data from the Bankers Association of the Philippines and PDEx, sustainable bonds are seeing increased traction in the local market, as both institutional and retail investors look for assets that combine financial returns with social and environmental impact.