BDO Unibank, the country’s largest lender, is raising $700 million from an offshore medium-term senior debt notes offering, marking the largest single debt issuance by a Philippine bank to date.
The notes maturing in 5.5 years will be issued at a price of 99.909 per 100 and will have a coupon of 2.95 percent per annum, BDO said in a press statement on Wednesday.
“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,” the bank disclosed to the Philippine Stock Exchange on Thursday.
The transaction was overwhelmingly oversubscribed, with orders reaching $2.2 billion, BDO said, reporting wide distribution of the notes across Asia Pacific and Europe. The settlement will be on Sept. 6, 2017.
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This issuance is the second offering under BDO’s $2-billion medium-term note (MTN) program set up in 2012. BDO had tapped an initial $300 million from this program in October last year.
The MTN is a type of debt program that allows an issuer like BDO to tailor-fit its debt issuance to its financing needs.
