BDO shortens P5-B LTNCD offer period

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BDO Unibank Inc has shortened its offer period for long-term negotiable certificates of deposits (LTNCD) and hiked its offer on oversubscription from an initial P5 billion to P7.5 billion.

“(The offer) closed on March 25 for the P5 billion LTNCDs, 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,” BDO said in a statement.

The P7.5 billion LTNCDs have an interest rate of 3.75 percent yearly, set to mature in the next five years and six months from the issuance. The issue on April 6 will mature on Oct 6, 2020.

“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 and Standard Chartered Bank were appointed joint lead arrangers

and selling agents, while BDO and BDO Private Bank will also act as
selling agents.

As an investment, LTNCDs are tax-exempt for qualified individuals or institutions if held for at least five years and are issued by the Philippine Deposit Insurance Corp. (PDIC) for up to P500,000.

BDO 2014 profits reached P22.8 billion. BDO is the banking arm of the SM Group via holding firm SM Investments Corp.

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