• BDO wraps up P5-billion LTNCDs offer

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    After having been oversubscribed by investors, the offer of P5-billion worth of long-term negotiable certificates of deposit (LTNCDs) by BDO Unibank Inc. (BDO) was already completed just more than a week after it was launched.

    A disclosure to the Philippine Stock Exchange showed on Monday that the banking arm of the Henry Sy-led conglomerate successfully concluded its offer of P5-billion worth of LTNCDs.

    “The LTNCDs will support the bank’s growth objectives and help lengthen the maturity profile of its funding sources,” BDO said.

    The offer, according to the bank, was oversubscribed by “a good mix of retail and institutional investors.”

    BDO specified that the LTNCDs will mature in seven years and have coupon rate of 3.50 per cent per annum, explaining that the interest will be paid quarterly and will be tax exempt for individual investors if held for at least five years.

    The issue date is set for September 12, the disclosure further said.

    Standard Chartered Bank (SCB) and ING Bank N.V. Manila Branch (ING) acted as joint lead arrangers, selling agents and market makers for the LTNCD, while BDO and BDO Private Bank were the other selling agents.

    BDO announced more than a week ago that it has already started offering the aforementioned LTNCDs, which will have a settlement and maturity date of September 5, 2013 and September 5, 2020, respectively.

    The LTNCD will come in minimum denomination of P100,000 and increments of P50,000, BDO earlier said.

    It was also reported before that BDO plans to issue up to P10-billion worth of LTNCD within the remaining months of the year.

    As part of its efforts to support its medium-term growth objectives, BDO has already issued up to P5-billion worth of LTNCDs in March, which it also concluded few days after it launched the offer.

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