BANCO De Oro Unibank Inc. (BDO) said on Thursday that its Tier 2 capital raising exercise was oversubscribed, prompting the country’s biggest lender to increase the issue size.

In a statement, BDO said it had to close the offer period two days ahead of the original schedule since investor interest hit P10 billion. As such, the bank increased its indicative issue size from P5 billion to P8 billion.

The BDO debt notes were priced at 6.50 percent a year and will mature in 10 years and three months from issue date, with a call option exercisable by the bank after 5 years.

The issue date is set for June 27.

The lender said this transaction is the fourth issuance of Tier 2 notes, the proceeds of which will be used to fund its expansion plans and enhance the bank’s capital adequacy ratio. As of March 31 this year, the bank’s CAR stood at 14 percent or above the Bangko Sentral ng Pilipinas’ 10 percent requirement.

Deutsche Bank AG and the Hong Kong and Shanghai Banking Corp. Ltd. acted as joint lead arrangers, joint bookrunners and selling agents for BDO’s recent fund-raising.

Multinational Investment Bancorporation was also designated as selling agent and market maker, while BDO acted as limited selling agent for the transaction.

BDO shares were last sold at P54.95 on Thursday from P55 the previous trading day.