BDO Unibank, Inc. (“BDO” or the “Bank”) recently made headlines with the early closure of its fourth Peso-denominated ASEAN Sustainability Bonds offering. Initially scheduled to run from July 9 to July 22, 2025, the Bank strategically opted to conclude the offer period on July 14, 2025. This decision was a direct response to overwhelming demand from a diverse range of investors, encompassing both retail and institutional participants.
The swift uptake of these bonds underscores a growing trend in the financial markets: a strong appetite for sustainable investment opportunities. For BDO, this early closure is a clear indicator of robust investor confidence not only in the Bank’s financial health but also in its commitment to sustainable practices. It suggests that investors are increasingly looking to align their portfolios with companies demonstrating a clear path towards environmental and social responsibility.
These latest ASEAN Sustainability Bonds, designed with a tenor of one-and-a-half (1.5) years, offer an attractive coupon rate of 5.875% per annum. This competitive rate, coupled with the Bank’s strong reputation, undoubtedly contributed to the rapid subscription. The official issue, settlement, and listing date for these bonds is set for July 29, 2025.
The net proceeds generated from this issuance are earmarked for significant strategic initiatives. Primarily, these funds are intended to finance and/or refinance eligible assets as defined within BDO’s meticulously crafted Sustainable Finance Framework. This framework serves as a guiding principle, ensuring that the Bank’s investments contribute positively to sustainable development goals. Beyond this, the proceeds will also play a crucial role in supporting the Bank’s broader lending activities and further diversifying its funding sources. This diversification is a key element of sound financial management, enhancing the Bank’s resilience and capacity for growth.
The successful execution of this bond offering was a collaborative effort involving several key financial partners. ING Bank N.V., Manila Branch (“ING”) served as the Sole Arranger and Sustainability Coordinator, playing a pivotal role in structuring the bonds to meet sustainability criteria. Both BDO Unibank, Inc. and ING acted as Selling Agents, facilitating the efficient distribution of the bonds to investors. Furthermore, BDO Capital & Investment Corporation provided invaluable expertise as the Financial Advisor, ensuring the smooth and effective management of the issuance process.
BDO Unibank’s latest foray into the sustainable bond market not only highlights its dedication to responsible finance but also reflects the increasing importance of environmental, social, and governance (ESG) factors in investment decisions. As the financial landscape continues to evolve, we can expect to see more institutions following BDO’s lead in offering impactful and sustainable investment vehicles.
Are you curious about how other financial institutions are embracing sustainable finance, or would you like to delve deeper into BDO’s Sustainable Finance Framework?
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