MANILA - BDO Unibank Inc. on Tuesday said it raised $300 million through the issuance of senior notes that fetched the lowest ever coupon.

The issuance of the five-year fixed rate senior notes was three times oversubscribed due to strong demand from Asian investors, the company told the stock exchange.

The issue, priced at 2.630 percent, has a maturity of five years.

The notes fetched the lowest ever coupon for any US dollar bond for a Philippine issuer. Lower coupon rates mean lower interest expense for the issuer, and a sign of investor confidence on the issue.

Proceeds of the fundraising activity would refinance outstanding bonds worth $300 million maturing in February next year, the bank said.

Standard Chartered Bank and UBS AG were tapped as joint lead arrangers for the transaction.

BOD shares were up 0.65 percent to P108.20 on Tuesday.