BDO defies Philippines CDS with tight bond

The Philippine lender returns to dollar bonds after five years off, telling FinanceAsia it wants to get ahead of the US rate hike.

After ICTSI closed a tender offer and new bond last week, the Philippine company's CFO told FinanceAsia that a major driver of the deal was his fear that US interest rates were on their way up. Philippine lender BDO Unibank came out with its own bond this week and the bank's treasurer admitted the same consideration drove the timing of the deal.

We want to seize the opportunity before the US Federal Reserve raises rates in December, Pedro Florescio, the Manila-based treasurer of BDO Unibank, told FinanceAsia in a phone interview.

The two issuers were responding to the increasing consensus that the Federal Reserve...

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