BDO Unibank Inc. has raised $500 million from a recently signed three-year syndicated term loan to fund its expansion and operations as well as refinance its debt.
BDO has closed and signed the loan on Thursday with a group of international banks, the Sy-led bank said.
The loan is the largest transacted by a Philippine financial institution to-date, the biggest bank in terms of assets said.
“The facility generated strong interest and was oversubscribed, prompting BDO to upsize it to $500 million from the initial tranche of $350 million,” the bank said in a statement.
“Lending commitments were received from various lenders widely distributed across the Americas, Europe, Asia and the Middle East. BDO intends to utilize the facility for refinancing of an existing term loan and for general banking and corporate purposes,” it added.
The international banks involved as arrangers and bookrunners were Bank of America N.A., Deutsche Bank AG-Singapore Branch, The Hong Kong and Shanghai Banking Corp (HSBC) Ltd, Mizuho Bank Ltd., Standard Chartered Bank, and United Overseas Bank Limited.
Syndicated loans are offered by a group of lenders, called a syndicate, which work together to provide funds for a single borrower, likely a corporation, a large project or a sovereign entity.
The bank is more into growing organically this year than the acquisition-oriented growth last year, thus the fund raising.
In January to March, the reported a net income of P6.1 billion, up 12 percent, boosted by loans and deposits. Fee-based reached P4.3 billion.
BDO is the banking arm of SM Investments Corp., the holding firm led by the Philippines’ richest man Henry Sy Sr.