BDO Unibank Inc (BDO) successfully raised Php40.1 billion of fixed rate bonds, or eight (8) times the original offer of P5.0 billion on robust demand from retail and institutional investors. A fixed rate bond is a type of debt instrument bond with a fixed coupon (interest) rate. The bond issuance is part of BDO’s continuing efforts to diversify its funding sources and support its lending activities, and follows the P35 billion of fixed rate bonds issued in February last year.
The one-week offer period ended last January 24, 2020, with issue date set on February 3, 2020 with a minimum investment of P100,00 with increments of Php50,000. BDO said the bonds will have a tenor of 2.5 years with a yield of 4.408 per cent per annum. Interest will be paid quarterly, calculated on a 30/360 count basis.
The bank tapped the Hong Kong and Shanghai Banking Corporation Limited (“HSBC”) as the Sole Lead Arranger and bookrunner for the issue. BDO Unibank Inc, BDO Private Bank Inc, and HSBC were the Selling Agents.