LENDING & CREDIT | Cesar Tordesillas, Philippines

BDO not in a hurry to tap fresh capital for lending

BDO  is not in a rush to tap fresh capital for its lending business, since it has adequate funds.

When the need arises, the lender can raise as much as $2 billion through the issuance of Euro Medium Term Notes.

“We have adequate funding so there is no need for [the EMTN] now,” said BDO president Nestor Tan.

BDO announced a plan in August to establish a $2-billion EMTN program as part of the bank’s liability management initiatives to tap longer-term funding sources and lower funding costs.

The EMTN program is a medium-term foreign currency funding facility that will give BDO the flexibility to issue foreign currency denominated notes, from time to time,

“But in the future, as we expect loan demand to pick up, then we may have to raise some money to manage our funding profile,” Tan said.

He added, “It is just a program that we set aside. Fund-raising will happen when we need it,” Tan said.

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