On 21 November 2007, BDO issued P10 billion in unsecured subordinated debt eligible as Lower Tier 2 Capital (the "Notes"), after successful completion of a public offer of an announced size of P5 billion of Notes and domestic roadshows in Metro Manila, Cebu, and Davao.

The public offer period, which started on November 8 and ended last Friday, November 16, resulted in oversubscription of more than three times, with total applications exceeding P15 billion. Due to the strong demand for the issue, BDO decided to increase the issue size from an initial offer of P5 billion to P10 billion of Notes, the maximum issue amount approved by the Bangko Sentral ng Pilipinas.

The Notes carry a coupon rate of 7.000% per annum and were issued at 100.00% of face value. The Notes will be used to further expand BDO's consumer loan portfolio and to refinance its existing issue of Lower Tier 2 debt, which is set to come due next year. The Notes will also increase and strengthen BDO's capital base, ensuring that it has available capital for its growth plans in the coming years. HSBC acted as the Lead Arranger and Selling Agent for the offering and will also act as the Notes' Market Maker and Public Trustee.

Institutional and retail investors took up roughly equal shares in the allocation, indicative of the Notes' appeal to a wide investor base. One of the major participants in the offer among institutional investors was the International Finance Corporation (IFC), the private sector arm of the World Bank and an existing minority shareholder of BDO. "This reflects the IFC's continued commitment to the bank as well as to supporting the development of the Philippine capital markets," said Jesse Ang, IFC Acting Country Manager for the Philippines and Thailand.

BDO is presently the country's second largest bank with assets of P608.1 billion and capital funds of P58.8 billion. BDO is among the market leaders in each of its core business lines, and has an extensive network of 670 branches and more than 1,200 automated teller machines nationwide.