The Philippine banking company, BDO Unibank, Inc. (BDO) was successfully raised Forty-Billion One Hundred Million pesos (P40.1 billion) of fixed rate bonds, or eight (8) times the original offer of Five Billion pesos (P5.0 billion) on strong demand from retail and institutional investors. The one-week offer period ended last January 24, 2020, with issue date set on February 3, 2020.
The bonds have a tenor of 2.5 years with a yield of 4.408 per cent per annum. Interest will be paid quarterly, calculated on a 30/360 count basis.
In fact, the bond issuance was part of BDO’s continuing efforts to diversify its funding sources and support its lending activities, and follows the P35 billion fixed rate of bonds issued in February last year.
The Hong Kong and Shanghai Banking Corporation Limited (“HSBC”) was the Sole Lead Arranger for the issue, while BDO Unibank, Inc., BDO Private Bank, Inc., and HSBC were the Selling Agents.
To give you an idea about a fixed rate bond with regards to finance matters, is a type of debt instrument bond with a fixed coupon (interest) rate. It is a long term debt paper that carries a predetermined interest rate. In addition with, the interest rate is known as coupon rate and interest is payable at specified dates before bond maturity.
About BDO
BDO is a full-service universal bank which provides a wide range of corporate and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust and investments, investment banking, private banking, rural banking, cash management, leasing and finance, remittance, insurance, retail cash cards, credit card services and stock brokerage services.
BDO has one of the largest distribution networks, with more than 1,400 operating branches and over 4,400 ATMs nationwide. It also has full-service branches in Hong Kong and Singapore as well as 20 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.
BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of September 30, 2019. For more information, please visit www.bdo.com.ph.
REFERENCE:
Chesca Ortega
PR and Events Specialist
Roar Agile Communicators Corp
roar.ph chesca.roar@gmail.com