BDO Unibank, Inc. (BDO) announced that its offer of P5 Bn worth of Long-Term Negotiable Certificates of Deposit (LTNCDs) was oversubscribed following strong demand from both retail and institutional investors. The issue was upsized from the original offer of P5.0 billion to P11.8 billion, representing almost 2 & 1/2 times the offered amount. 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.
This latest tranche of LTNCDs has a term of five and a half (5 & 1/2) years with the interest rate set at 3.625% 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: a) tax exemption on interest income for individual investors if held for at least five (5) years; b) quarterly interest payments; c) deposit insurance coverage with the PDIC up to a maximum of P500,000 per depositor; d) 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.
Deutsche Bank AG, Manila Branch (DB) and ING Bank N. V., Manila Branch (ING) acted as 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.