BDO Unibank Inc., (BDO) said it has received a total of $2.9 billion tender for its announced $600 million fixed rate senior notes, attracting an oversubscription of almost 5x for the issuance under the bank’s medium term note program.
The issue has a coupon rate of 2.125 per cent per annum and a tenor of five and a half years, and was rated “Baa2” by Moody’s.
BDO said the senior note issue is part of the its “liability management initiatives to tap longer-term funding sources to support dollar-denominated projects.”
Standard Chartered Bank acted as sole global coordinator, while Standard Chartered Bank and Merrill Lynch (Singapore) Pte. Ltd acted as joint bookrunners and joint lead managers for the transaction.
Nestor Tan, BDO president, in mid-June said the bank remains strong and sound despite a P20 billion additional loan provisions in response to the negative impact of the new coronavirus disease 2019 (COVID-19) pandemic.
Tan said the provisioning is “anticipatory in nature.”
“We are not yet experiencing losses. The additional provisions are meant to safeguard our balance sheet and will not impair our capital which is strong enough to withstand near-term shocks,” Tan said.
Tan said BDO’ capital position remains strong despite the additional provisions, and that BDO intends to continue with its regular quarterly dividends.
BDO earlier paid out P0.30 per share cash dividend on common shares for the first quarter of the year and declared the same for the second quarter 2020 payable on June 29, 2020 to all stockholders of record as of June 17, 2020.
BDO closed the first quarter of the year with profit of P8.8 billion.