THE BDO Unibank Inc.’s (BDO) offering of Long-Term Negotiable Certificates of Deposit (LTNCD) was driven by solid demand from retail and institutional investors, resulting in total subscriptions of P7.3 billion, almost 1.5 times the original offer.
As a result, the issue was upsized from the original offer of P5 billion, and the offer period was shortened to April 4, 2019. This latest tranche of LTNCDs has a term of five and a half (5 and 1/2) years with interest rate set at 5.375 percent per annum. The issue date is scheduled on April 12, 2019, while the maturity date will be on October 12, 2024.
Other features of the LTNCD include: a) tax exemption on interest income for individual investors if held for at least five years; b) quarterly interest payments; c) deposit insurance coverage of 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 lengthen the maturity of its funding sources and support business expansion plans.
Deutsche Bank AG, Manila Branch (DB) acted as the sole lead arranger and selling agent for the issue, while BDO and BDO Private Bank are the other selling agents. BDO Capital and Investment Corp. served as BDO’s financial advisor. (PR)