BDO to issue up to P5-B LTNCDs

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SY-LED bank BDO Unibank Inc. will issue another tranche of long-term negotiable certificates of deposit (LTNCD) worth up to P5 billion to extend the maturity of its funding sources and support its growth objectives.

In a statement, the bank said the P5-billion LTNCDs will have a tenor of five-and-a-half years.

Pricing will follow at the end of the offer period, which will run from March 16 to 27. The issue date is set on April 6.

Selling LTNCDs is one way for banks to raise funds, usually in huge amounts. The bank is obliged to pay the face value of the certificate upon maturity, and produce periodic coupon or interest payments during the life of the deposit.


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

ING Bank N. V. Manila and Standard Chartered Bank are the joint lead arrangers and selling agents for the issue, while BDO and BDO Private Bank are the other selling agents.

In December 2013, BDO issued a previous tranche of LTNCDs also amounting to P5 billion.

For 2015, the bank achieved its full-year net income target as profits reached P22.8 billion.

BDO is the banking arm of the SM Group. The group, through its holding firm SM Investments Corp., also has businesses in property (SM Prime Holdings Inc.) and retail (SM Retail Inc.), as well as other affiliates such as China Banking Corp., Premium Leisure Corp. and Belle Corp., among others.

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