BDO upsizes LTNCD offer to P7.3B

2019 April – BDO Unibank, Inc.’s offering of Long-Term Negotiable Certificates of Deposit (LTNCD) resulted in total subscriptions of P7.3 B, almost 1.5 times the original offer.


Driven by solid demand from retail and institutional investors, the issue was upsized from the original offer of P5.0 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 & 1/2) years with interest rate set at 5.375% 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 (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 efforts by the country’s largest bank* 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.


The Bank would like to thank its clients and the investing public for their continued confidence and support for this transaction.


*As of December 31, 2018, BDO Unibank Inc. ranks as the country’s largest bank in terms of total assets, loans, deposits, and trust funds under management based on published statements of condition.


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