BDO Unibank Inc. has secured P115 billion through its fourth peso-denominated ASEAN Sustainability Bond issuance, significantly surpassing the original target of P5 billion by more than 23 times due to robust investor interest. The offering, initially planned from July 9 to 22, was concluded early on July 14 to accommodate the strong demand, the bank announced to the stock exchange on Tuesday.

The bonds have a maturity period of 18 months and carry an annual coupon rate of 5.875 percent. According to BDO, the net proceeds will be allocated toward financing or refinancing eligible sustainable assets in line with the bank’s sustainable finance framework, supporting lending activities, and diversifying funding sources.

The transaction was exclusively arranged and coordinated for sustainability by ING Bank N.V., Manila Branch. Both BDO and ING acted as selling agents, with BDO Capital & Investment Corp. serving as financial advisor for the offering.

Earlier on Monday, BDO reported a net income of P40.6 billion for the first half of the year, marking a 3 percent increase from P39.4 billion in the same period last year. This growth was attributed to sustained strength in core business operations.

Gross customer loans rose 14 percent to P3.4 trillion, while deposits increased by 8 percent, topping P4 trillion. The bank’s net interest income climbed 7 percent, and non-interest income surged 15 percent, driven by notable contributions from fee-based income and insurance operations.

BDO also highlighted improvements in asset quality, with its non-performing loan (NPL) ratio decreasing to 1.75 percent, and NPL coverage steady at 140 percent.

Despite ongoing geopolitical uncertainties and new US tariff measures, the bank remains optimistic about the Philippines' resilience, supported by a consumer-driven economy and steady domestic demand. BDO affirmed its strong position to navigate emerging risks and leverage growth opportunities, backed by a robust capital base and a diversified business model.

On Tuesday, BDO’s share price dipped by 50 centavos or 0.34 percent, closing at P148.50, coinciding with a 0.85 percent decline in the Philippine Stock Exchange index.