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May 31, 2024

BDO raises $100M via maiden Blue Bond issuance

BDO Unibank Inc. headed by bankero Nestor Tan raised $100 million via its maiden Blue Bond through an investment from the World Bank’s International Finance Corp. (IFC).

This marks another milestone for the country’s largest lender, being the first private sector issuance in Southeast Asia to issue a Blue Bond.

The listed bank owned by the family of the late taipan Henry Sy would use the proceeds of the fund raising activity to finance projects that help prevent marine pollution and preserve clean water resources, while supporting the country’s climate goals.

BDO’s issuance reinforces the bank’s commitment to sustainable finance, allowing it to provide more support to critical areas such as water conservation, wastewater treatment, plastic recycling, sustainable tourism, fisheries, and sustainable seafood processing among others.

More importantly, the bond will help the Sy-led bank expand its Sustainable Finance Framework to include projects supporting the country’s blue economy, while establishing a new asset class in the Philippine debt market.

The pioneering seven-year Blue Bonds will adhere to the International Capital Market Association (ICMA) Green Bond Principle and IFC’s recently launched Blue Finance Guidelines.

BDO Capital & Investment Corp. acted as the arranger in this transaction