BDO raises P7.5-B from LTNCDs


Posted at Mar 26 2015 10:32 AM | Updated as of Mar 26 2015 06:33 PM

MANILA, Philippines - BDO Unibank on Thursday said it raised P7.5 billion ($167 million) from the issuance of long-term certificates of deposit that was more than twice oversubscribed.

In a statement, BDO said it closed the offer period for its issue of P5 billion worth of long-term negotiable certificates of deposit (LTNCDs) on March 25, two days ahead of schedule.

"With more than two times oversubscription following strong demand from both retail and institutional investors, the offer was upsized to P7.5 billion," the Sy-led bank said.

The LTNCDs has a term of 5 1/2 years with a final interest rate of 3.75 percent per annum. The issue date is set for 6 April 2015, while the maturity date is on 6 October 2020.

It also offers tax exemption on interest income for individual investors if held for at least 5 years; quarterly interest payments; deposit insurance coverage with the PDIC up to a maximum of P500,000 per depositor; and negotiability subject to market conditions.

"The LTNCD issuance is intended to lengthen the maturity profile of the Bank’s funding sources as well as support its medium-term growth plans," BDO said.

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