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Philippine Stock Exchange : BDO raises $300 M from notes issuance

by October 18, 2016 General

MANILA, PhilippinesBDO Unibank Inc. (BDO), the country’s largest bank, successfully returned to the overseas debt market, raising $300 million through the issuance of senior notes that fetched the lowest ever coupon.BDO said in a disclosure to the Philippine Stock Exchange (PSE) that the issuance of the five-year fixed rate senior notes as part of a $2-billion medium term note program launched a few years ago was three times oversubscribed due to strong demand from Asian investors. The notes fetched the lowest ever coupon for any dollar bond for a Philippine issuer The fixed rate senior notes were priced at 263 percent.BDO said the issuance was part of the bank’s liability management initiatives to tap longer-term funding sources to support dollar-denominated projects. Proceeds of the fundraising activity, the bank added, would effectively refinance outstanding bonds worth $300 million maturing in February next year Standard Chartered Bank and UBS AG acted as joint lead arrangers for the transaction.element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1 Moody’s Investors Service has assigned a Baa2 rating on BDO’s dollar-denominated senior unsecured notes with a maturity of five years. The bonds will be listed on the Singapore Stock Exchange.The rating given by the debt watcher is a notch above minimum investment grade. Retail and banking magnate Henry Sy owns BDO.The $2 billion overseas debt facility was launched in August 2012 to boost funds for long-term relending to fund big-ticket infrastructure projects under the government’s public-private partnership (PPP) program It was originally launched as the Euro Medium Term Note (EMTN) program is a medium-term foreign currency funding facility that gives flexibility to issue foreign currency-denominated notes in the international capital markets. These are offered on a continuing basis rather than a one-time deal like a bond issuance making it easier for BDO to tap offshore capital markets.Last month, BDO announced it is beefing up its capital base through a P60 billion stock rights offering to take advantage of the country’s sustained economic growth opportunities. The fund raising activity would help BDO comply with the higher requirement to be imposed by the Bangko Sentral ng Pilipinas (BSP) on domestic systemically important banks (DSIBs) or too big to fail banks.© Pakistan Press International, source Asianet-Pakistan