BDO Raises $2.3 Billion in Sustainability Bonds, Surpassing Target by 26x

KEY TAKEAWAYS

·BDO Unibank raised P132 billion from its sixth ASEAN sustainability bond issuance, exceeding the P5 billion minimum target by more than 26 times and closing the offer eleven days early.
·The 18-month bonds carry a 6.26 percent coupon and bring BDO's cumulative sustainability bond issuance since January 2022 to P518.7 billion across six offerings.
·Proceeds will finance eligible assets under the bank's sustainable finance framework, support lending activities, and diversify funding sources as Philippine banks compete for loan growth.

Overwhelming Demand Closes Offer Early

BDO Unibank secured P132 billion ($2.3 billion) from its sixth peso-denominated ASEAN sustainability bond issuance, collecting more than 26 times its minimum offer size as investors across retail and institutional segments piled into the instrument. The Sy-led bank disclosed the final figure to the Philippine Stock Exchange following an early closure of the offer period on July 10, eleven days ahead of the original July 21 deadline.

The bank had set a minimum offer size of P5 billion when it announced the issuance earlier in July. The 18-month bonds carry a coupon rate of 6.26 percent per annum, with settlement and listing completed on July 28.

ING Bank Manila Branch served as sole arranger and sustainability coordinator for the transaction. BDO and ING acted as selling agents, while BDO Capital & Investment Corp. provided financial advisory services.

Doubling Down on Sustainable Finance

The latest raise marks BDO's second sustainability bond issuance in 2026, following a P100 billion offering in January. Since launching its first sustainability bond in January 2022, the bank has now raised a cumulative P518.7 billion through six issuances.

According to BDO, proceeds will finance and refinance eligible assets under the bank's sustainable finance framework, support lending activities, and diversify funding sources. Sustainability bonds enable banks to channel capital toward projects generating environmental and social benefits while meeting their sustainable finance commitments.

The instrument has become a preferred funding mechanism for Philippine banks seeking to expand green and social lending portfolios without straining traditional deposit bases. For BDO, the repeat issuances signal sustained investor confidence in the bank's credit profile and its ability to deploy capital into eligible projects.

Market Leadership and Regional Footprint

BDO remains the largest bank in the Philippines by total assets, loans, deposits, and trust funds under management, based on published statements of condition as of end-March 2026. The bank operates close to 2,000 consolidated branches and more than 7,700 automated teller machines across the country.

Internationally, BDO maintains 15 offices spanning Asia, Europe, North America, and the Middle East, including full-service branches in Hong Kong and Singapore. This regional presence positions the bank to tap cross-border sustainable finance flows as ASEAN economies ramp up infrastructure and climate transition spending.

The scale of the latest bond issuance underscores the depth of the Philippine capital market for sustainability-linked instruments. Retail participation, in particular, reflects growing awareness among individual investors of environmental, social, and governance criteria, a trend accelerated by regulatory disclosure requirements and tax incentives for green bonds.

Funding Mix and Growth Strategy

For BDO, the sustainability bond program serves a dual purpose: it locks in term funding at competitive rates while demonstrating alignment with global ESG standards increasingly scrutinized by international investors and credit rating agencies. The 6.26 percent coupon on the 18-month tenor offers a premium over shorter-dated government securities, attracting yield-seeking investors in a market where policy rates have stabilized.

The bank's ability to raise multiples of its target also provides flexibility in capital deployment. With P132 billion in fresh liquidity, BDO can accelerate lending to sectors such as renewable energy, green real estate, and sustainable agriculture, all of which fall under typical sustainability bond frameworks.

As Philippine banks compete for loan growth in a recovering economy, access to diversified funding sources becomes a strategic advantage. Sustainability bonds allow BDO to differentiate its liability profile while meeting the financing needs of borrowers pursuing decarbonization and social impact projects.

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