Products and Services
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Equity and Quasi-Equity Underwriting and Management
BDO Capital underwrites and manages equity and quasi-equity transactions which can either be sold to the public or privately placed. By underwriting, BDO Capital assures the issuer that the securities being offered will be taken up in full and the required amount being raised will be delivered on settlement date. Most often than not, BDO Capital also manages the issue, including, among others, liaising with regulatory agencies, coordinating with the other parties to the transaction (legal and tax counsels, auditors, etc.) and making sure that all aspects of the issue are in order. Among the equity issues that BDO Capital manages and/or underwrites are:BDO Capital underwrites and manages equity and quasi-equity transactions which can either be sold to the public or privately placed. By underwriting, BDO Capital assures the issuer that the securities being offered will be taken up in full and the required amount being raised will be delivered on settlement date. Most often than not, BDO Capital also manages the issue, including, among others, liaising with regulatory agencies, coordinating with the other parties to the transaction (legal and tax counsels, auditors, etc.) and making sure that all aspects of the issue are in order. Among the equity issues that BDO Capital manages and/or underwrites are:
Initial Public OfferingsFirst sale or issue of tradeable securities to the public.Follow-On Offerings Re-offering of additional shares of a listed company. Rights Offerings Right given to an existing shareholder of a company to subscribe or purchase additional shares of said company for every share the existing shareholder owns. Warrants The right, but not the obligation, to subscribe or purchase new shares or existing shares in a company on or before a predetermined date. every share the existing shareholder owns. Issuer Tender Offers Publicly announced intention by an issuer to reacquire any of its own class of equity securities, or by an affiliate of such issuer to acquire such securities.Issuer Tender Offers - Publicly announced intention by an issuer to reacquire any of its own class of equity securities, or by an affiliate of such issuer to acquire such securities. Preferred Shares (Quasi-Equity) Hybrid form of financing, combining features of debt and common shares. In an event of liquidation, preferred shareholders' claim on the company's assets comes after that of creditors but before that of common shareholders. Preferred shares normally carry a stipulated dividend but payment of which is discretionary. -
Direct Equity Investment
BDO Capital either invests directly in existing companies or start-ups or offers the investments to other clients (under private placement services). Major considerations for a direct equity investment are earnings and growth potentials.
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Financial Advisory
BDO Capital provides financial advisory services to companies wanting to explore all possible means to further their short-, medium- or long-term growth prospects. As financial advisor, BDO Capital provides a menu of options taking into consideration the company's current business profile, market/industry where it belongs and plans and prospects. Advisory services may cover corporate and debt restructuring and mergers and acquisition transactions.
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Fixed- Income Underwriting, Packaging and Syndication
Fixed-income issues are an alternative to equity capital, generally suited to clients avoiding dilution of ownership. BDO Capital offers the following services for this general product line:
Underwriting of Bonds and Commercial Papers
BDO Capital underwrites bonds and commercial papers which are evidence of indebtedness of private or government entitieswith maturity of either 365 days or less (short-term commercial papers) or more than 365 days (long-term commercial papers/bonds). Purchasers of or investors in bonds/ commercial papers receive earnings via periodic coupon or interest payments.
* Corporate Bonds/Long-Term Commercial Papers - Registered with the Securities and Exchange Commission and rated. Normally sold to the public
* Government Bonds/Securities - Credit risk-free, hence rating is not required. Highly marketable and liquid. Sold to the public.
* Short-Term Commercial Papers - Registered with the Securities and Exchange Commission and rated. May be sold to the public or privately placed.Term Loan Packaging and Syndication
BDO Capital arranges and syndicates term loans for companies who wish to borrow money from selected financial institutions or through private placement. BDO Capital invites other participants in the issue, or " syndicates " the transaction. Term loans may be denominated either in pesos or dollars.
* Corporate Loans - Certificate of indebtedness of a corporation
* Project Finance - Involves a corporation (project sponsor) investing in and owning a single-purpose industrial asset
(usually with a limited life) through another company (project company) financed by non-recourse or limited-recourse
debt. Borrowers are usually power plants, infrastructure companies (roads) and hospitals. -
Securitization
Securitization is the process by which assets are sold on a without recourse basis by a seller to a special purpose entity. In return, asset-backed securities are issued by a special purpose entity which depend, for their payment, on the cash flow from the underlying assets so sold. BDO Capital underwrites or acts as selling agent for asset-backed securities issued by such special purpose entities.
* Asset-Backed Securities. Certificates issued by a special purpose entity representing undivided ownership interest in an asset pool or a group of identified, self-amortizing assets that is conveyed to a special purpose entity issuing the asset-backed securities.