BDO ASEAN Sustainability Bond Offer Ends Early After Investor Oversubscription

Takeaways

• BDO closed its latest ASEAN sustainability bond offer after just one day due to strong demand from retail and institutional investors.
• The bank plans to use the proceeds to support sustainable finance initiatives, refinance eligible assets, and strengthen its lending activities.
• The latest issuance continues BDO's successful sustainability bond program, which has consistently attracted strong investor interest.

Sy-led BDO Unibank Inc., the Philippines' largest lender, has closed the offering of its latest BDO ASEAN sustainability bond ahead of schedule after receiving overwhelming demand from investors. The bank ended the offer period just one day after it opened, highlighting continued confidence in its sustainable finance strategy.

The bond sale was originally scheduled to run from July 9 to July 21, 2026. However, BDO announced on July 13 that it had decided to stop accepting subscriptions on July 10 after the offer was oversubscribed by both retail and institutional investors.

The latest ASEAN sustainability bond has a maturity period of one and a half years and offers a fixed annual coupon rate of 6.26%. The bonds are scheduled for issue, settlement, and listing on July 28, 2026.

Read More: Sustainable Bond Market Sees Sharp First-Half Decline in 2025

BDO said the proceeds from the issuance will be used to finance and refinance projects that qualify under its sustainable finance framework. The funds will also support the bank's lending operations while helping diversify its funding base. The transaction further strengthens BDO's long-term commitment to sustainable finance and responsible banking.

The bank had initially announced plans to raise at least ₱5 billion through the fixed-rate BDO sustainability bond offering. Although the final amount raised has not yet been disclosed, the early closure reflects strong market appetite for sustainability-linked investments.

The issuance was arranged by ING Bank N.V. Manila Branch, which also served as the sustainability coordinator. BDO and ING acted as selling agents, while BDO Capital & Investment Corp. was the financial adviser for the transaction.

This is BDO's second sustainability bond issuance in 2026. Earlier this year, the bank raised ₱100 billion through its fifth peso-denominated ASEAN sustainability bond issue. That offering was 20 times oversubscribed compared with its initial ₱5-billion target, prompting the bank to end the subscription period ahead of schedule.

Since launching its green bonds and sustainability bond program in January 2022, BDO has completed multiple successful issuances. Before the current offer, the bank had already raised a combined ₱386.7 billion through five sustainability bond issuances, demonstrating consistent investor confidence in its sustainable funding initiatives.

The bank has repeatedly exceeded its minimum fundraising target of ₱5 billion in previous offerings. In July 2025, for example, BDO raised ₱115 billion through its fourth peso-denominated ASEAN sustainability bond issuance, which was oversubscribed by 23 times.

The latest issuance has also received regulatory confirmation from the Securities and Exchange Commission (SEC), which verified compliance with both the ASEAN Sustainability Bond Standards and the SEC's ASEAN sustainability bond requirements.

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The strong response to BDO's latest offering reflects growing investor interest in sustainable investing and environmental, social, and governance (ESG)-linked financial products. As demand for responsible investment opportunities continues to rise, Philippine banking institutions such as BDO are increasingly using sustainability bonds to finance projects that deliver both financial returns and long-term environmental and social benefits.

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Source: MANILA BULLETIN