BDO raises record P115B in Philippines' largest corporate bond sale
What's the deal? BDO UnibankDealroom has a profile for this one. Try Dealroom →, the Philippines' largest lender, raised P115 billion (about $1.87 billion) from its latest ASEAN Sustainability Bond offering — the country's largest corporate bond sale. The 1.5-year bonds carry a fixed 5.875% annual rate and were listed on the Philippine Dealing & Exchange Corp.
Why now? Demand ran far ahead of supply. The offering was oversubscribed 23 times, drawing both retail and institutional investors, and exceeded its original P5 billion target.
That appetite let BDO shorten its offer period, closing on 14 July 2025 instead of the planned 9–22 July window. ING BankDealroom has a profile for this one. Try Dealroom →'s Manila branch acted as sole arranger and sustainability coordinator, with BDO Capital & Investment Corp. as financial adviser.
What it means. BDO will use the proceeds to finance or refinance eligible assets under its Sustainable Finance Framework, support lending, and diversify its funding sources. This was the bank's fourth such issuance, following P52.7 billion in January 2022, P63.3 billion in January 2024 and P55.7 billion in July 2024.
By the numbers. BDO's net income rose 3% to P40.6 billion in the first half of 2025 from P39.4 billion a year earlier. Net interest income climbed 7%, backed by 14% growth in gross customer loans to P3.4 trillion, though second-quarter profit was flat at P20.9 billion.
The bank said earnings growth was "tempered by continuing investments in market coverage and IT spending for operational efficiency." It set aside P7.3 billion in provisions for impairment losses to match its larger loan book.
The signal. The raise ranks in the 96th percentile among all-time post-IPO debt rounds in Philippine fintech, a sign of deep local demand for sustainability-linked paper. For BDO, each bond round has grown larger, pointing to a maturing green-finance market in Southeast Asia.
Read more: BusinessWorld · Jeepney News
Image credit: Jun Acullador
