BDO raising $700M via senior notes issue


BDO Unibank Inc. (BDO) is set to issue $700 million in fixed rate senior notes – described as the largest single issuance by a Philippine bank to date — under a medium term note program

“The senior note issue is part of the bank’s liability management initiatives to tap longer-term funding sources to support BDO’s lending operations and general corporate purposes,” it said in a statement on Thursday.

BDO said this would be the second drawdown under the program following the $300 million issued in October last year.

The notes will have a coupon of 2.950 percent and will be priced at 99.909 per 100, with a maturity of five-and-half years.

The bonds have been rated Baa2 or investment grade by Moody’s Investors Service.

BDO said the transaction was overwhelmingly oversubscribed, with orders reaching $2.2 billion.
Settlement will be on September 6, 2017.

“With a wide distribution across Asia Pacific and Europe, this transaction represents the largest single issuance by a Philippine bank to date,” it said.

BofA Merrill Lynch, HSBC and Wells Fargo Securities acted as joint lead managers and joint bookrunners, while Mizuho Securities and MUFG acted as co-managers for the transaction.

BDO is the Philippines’ largest bank in terms of assets, loans, deposits and trust funds under management based on published statements of condition as of March 31, 2017.

In the second quarter of 2017, the bank’s net income eased by 2.6 percent to P7.5 billion from P7.7 billion a year earlier.

Year to date, net income rose 0.3 percent from a year earlier.


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