BDO to establish US$2 billion EMTN program

BDO Unibank, the Philippines’ largest bank in terms of assets, looks to lower funding costs.

It will establish a US$2 billion Euro Medium Term Note (EMTN) program to raise funds for infrastructure lending. BDO said the move is part of its liability management initiatives to use longer-term funding sources and lower funding costs.

BDO said setting up the EMTN program is a preparatory move as this will enhance the bank’s ability to access longer-term funding for relending to projects like infrastructure under the government’s Public-Private Partnership program.

The bank is also planning to retire US$239 million of its Series 1 Tier 2 notes this November.

Part of BDO’s recent rights offer was earmarked for the redemption of these higher-cost notes that carry a coupon rate of 7%. The retirement of these notes will reduce the bank’s cost of funding and improve its capital structure in favor or higher quality core Tier 1 capital.


 

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!