BDO Unibank Secures Record P132 Billion from Sustainability Bonds

BDO Unibank Inc., the Philippines' largest bank by assets, has achieved a remarkable milestone by raising P132 billion (approximately $2.3 billion) from its sixth issuance of peso-denominated ASEAN Sustainability Bonds. This offering, which saw subscriptions exceeding 26 times the initial target of P5 billion, reflects a robust appetite among both retail and institutional investors, prompting an early closure of the offer period on July 10, 2026.

The bonds, which carry a tenor of one and a half years and a fixed coupon rate of 6.26 percent per annum, were officially settled and listed on the Philippine Dealing and Exchange Corp. (PDEx) on July 28. This issuance not only marks BDO's sixth sustainability bond offering but also sets a new record for the largest single corporate bond issuance in the Philippines, surpassing its own previous record of P115 billion from a similar bond offering last year.

According to BDO, the net proceeds from this issuance will be allocated to finance or refinance eligible projects under its Sustainable Finance Framework, which is designed to support the bank's lending activities and diversify its funding sources. Although the specific projects funded by this issuance have not been disclosed, BDO has assured that they will align with its sustainability objectives.

“There are lots of yield seekers as the system is awash with cash.”Cristina S. Ulang, Head of Research, First Metro Investment Corp.

ING Bank N.V., Manila Branch acted as the sole arranger and sustainability coordinator for the transaction, while BDO Capital & Investment Corp. served as the financial advisor. The strong demand for the bonds has been attributed to high liquidity in the Philippine financial system, as noted by Cristina S. Ulang, Head of Research at First Metro Investment Corp. She remarked that there are many yield seekers as the system is awash with cash.

Despite the successful bond issuance, BDO's financial performance has faced challenges. The bank reported a 1.43 percent decline in attributable net income to P20.61 billion ($366 million) for the second quarter of 2026, primarily due to rising costs and increased loan loss provisioning. However, its shares rose by P1.80, or 1.44 percent, to close at P127 ($2.25) each on the same day as the bond listing, outperforming the broader market, which saw a slight decline.

This latest bond issuance underscores the bank's commitment to sustainable financing and its pivotal role in the Philippine banking sector.