Manila’s Banco de Oro raises $62 mln Tier 2 debt

Banco de Oro Unibank (BDO) (BDO.PS), the Philippines’ biggest bank, said on Monday it had raised 3 billion pesos ($62 million) from an offer of unsecured subordinated debt eligible as lower Tier 2 capital.

With the offer, the bank completed its one-year capital raising programme, acquiring a total of 13 billion pesos in fresh funds via tier 2 notes aimed at funding its expansion.

BDO, the country’s largest bank by market capitalisation and assets, said it increased the size of the 10-year notes issue to 3 billion pesos from 2.5 billion pesos.

The offer, which ended on Friday, attracted total bids of almost 5 billion pesos.

“Retail investors took up majority of the allocation, indicative of the notes’ appeal to individuals searching for investment options for their long-term savings,” BDO said in a statement to the Philippine Stock Exchange.

The notes carry a coupon rate of 7.5 percent and have an early redemption option on the fifth year.

HSBC HSBA.LS was the sole arranger of the transaction.

BDO is a unit of conglomerate SM Investments Corp (SM.PS), which is owned by the country’s richest man, Henry Sy. ($1 = 48.43)

Manila’s Banco de Oro raises $62 mln Tier 2 debt