BDO Unibank Inc is raising $700 million through a senior notes issue, the largest single issuance by a Philippine bank.
BDO is set to issue the amount in fixed rate senior notes under its Medium Term Note (MTN) programme.
This will be the second drawdown under the programme following the $300 million issued in October last year.
“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,” BDO said in its statement.
The notes will have a coupon of 2.950 per cent and will be issued at a price of 99.909 per 100, with a maturity of 5.5 years.
Moody’s rated the bonds even as 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,” BDO noted.
The Sy-led full-service universal bank has one of the largest distribution networks, with more than 1,100 operating branches and over 3,800 ATMs nationwide.
It also has a full-service branch in Hong Kong as well as 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.
BDO last traded at P127.10 per share on Thursday, August 31.