BDO upsizes deposit notes issue to P11.8B

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BDO Unibank Inc. (BDO) said its offer of P5-billion worth of long-term negotiable certificates of deposit (LTNCDs) was oversubscribed due to strong demand from both retail and institutional investors.

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The issue was upsized from the original amount of P5 billion to P11.8 billion, representing almost two-and-a-half times the offered amount, the bank said a disclosure to the Philippine Stock Exchange on Friday.

As a result, BDO shortened the offer period for its issue to August 10, 2017, a day ahead of schedule.

“This transaction is the largest single issuance to date of LTNCDs by a local bank,” it said.

BDO’s latest tranche of LTNCDs has a term of five-and-a-half years with the interest rate set at 3.625 percent per
annum. The issue date is slated on August 18, 2017, while the maturity date will be on February 18, 2023.

Other features of the LTNCD include: tax exemption on interest income for individual investors if held for at least five years; quarterly interest payments; deposit insurance coverage with the Philippine Deposit Insurance Corp. up to a maximum of P500,000 per depositor; and negotiability subject to market conditions.

“The LTNCD issuance is part of the bank’s efforts to diversify the maturity profile of its funding sources and support business expansion plans,” BDO said.

Deutsche Bank AG, Manila Branch and ING Bank N. V., Manila Branch were the joint lead arrangers and selling agents for the issue while BDO and BDO Private Bank were the other selling agents.

“The bank would like to thank its clients and the investing public for their continued confidence and support for this issue,” it said.

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