BDO to issue P5 billion LNTCDs


Posted at Mar 16 2015 10:44 AM | Updated as of Mar 16 2015 06:44 PM

MANILA – BDO Unibank Inc. (BDO) said on Monday that it is set to issue another tranche of up to P5 billion Long-Term Negotiable Certificates of Deposit (LTNCD).

The banks said the issuance of the LTNCD is part of its efforts to lengthen the maturity of funding sources and support its growth objectives.

The tranche of LTNCDs will have a term of five and one half years with indicative pricing to be finalized at the end of the offer period. Interest will be paid quarterly in arrears.

The minimum investment is P100,000 with increments of P50,000.

The bank said the offer period is from March 16-27, with the issue date set on April 6, 2015.

However, the bank reserves the right to adjust the timing of the offer as needed.

BDO has tapped ING Bank N. V. Manila Branch (ING) and Standard Chartered Bank (SCB) as Joint Lead Arrangers and Selling Agents for the issue while BDO and BDO Private Bank are the other selling agents.

LTNCDs are negotiable certificates of deposit with a designated maturity, and represent a bank’s obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit.

BDO also issued P5 billion worth of LTNCDs in December 2013.