BDO Raises ₱100 Billion in Fifth ASEAN Sustainability Bond Issuance

BDO Unibank Inc. has successfully raised ₱100 billion through its fifth peso-denominated ASEAN Sustainability Bond issuance, underscoring strong investor demand for sustainable finance instruments in the Philippine market. The transaction was significantly oversubscribed, attracting subscriptions roughly twenty times the original offer size of ₱5 billion and leading to the early close of the offer period on January 16, 2026.

 

Strong Investor Demand and Market Confidence

 

The latest bond issuance drew broad participation from both retail and institutional investors, reflecting continued confidence in BDO’s sustainability strategy and credit profile. Since launching its sustainability bond programme in January 2022, the bank has now raised a cumulative ₱386.7 billion across five issuances, positioning it as one of the most active domestic issuers in the ASEAN sustainable finance space.

The scale of oversubscription highlights growing appetite among local investors for instruments that combine stable returns with clearly defined environmental and social use-of-proceeds frameworks. It also signals increasing market maturity for sustainability-linked capital raising in the Philippines.

 

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Bond Structure and Use of Proceeds

 

The newly issued ASEAN Sustainability Bond carries a tenor of three years and offers a fixed coupon rate of 5.7125 percent per annum. The bonds were issued, settled, and listed on January 26, 2026.

Proceeds from the issuance will be used to support BDO’s lending activities and further diversify its funding base. The bank has indicated that funds will be allocated to finance or refinance eligible assets in line with its Sustainable Finance Framework, reinforcing its commitment to integrating sustainability considerations into core banking operations.

 

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Transaction Roles and Advisory Support

 

Standard Chartered Bank acted as the sole arranger for the transaction, with both Standard Chartered Bank and BDO Unibank serving as selling agents. BDO Capital & Investment Corporation supported the issuance as financial advisor.

The successful execution of the bond offering reflects coordinated distribution and advisory efforts, as well as sustained demand for peso-denominated sustainability instruments within domestic capital markets.

 

Expanding Sustainable Finance in the Philippines

 

BDO’s latest issuance adds momentum to the broader expansion of sustainable finance in the Philippines, where banks are increasingly tapping debt markets to fund climate-aligned and socially focused lending. With each successive transaction growing in scale, the bank’s sustainability bond programme demonstrates how domestic financial institutions can mobilise capital at meaningful volumes while aligning funding strategies with long-term environmental and social objectives.