BDO LTNCD offering oversubscribed

MANILA, Philippines -  Sy-owned BDO Unibank Inc. (BDO) concluded a day earlier its P5-billion worth of Long Term Negotiable Certificates of Deposit (LTNCDs) offering on Oct. 4.

BDO was supposed to offer the certificates from Sept. 26 to Oct. 5, 2012.

In a disclosure to the Philippine Stock Exchange, BDO said it closed the offer period early due to oversubscription from retail and institutional investors.

LTNCDs are negotiable certificates of deposit with a designated maturity, and represents a bank’s obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit. LTNCDs are covered by deposit insurance with the PDIC up to a maximum amount of P500,000 per depositor.

The LTNCDs will mature seven years after issue date and will have a coupon rate of 5.25 percent p.a. Interest will be paid quarterly and will be tax exempt for individual investors if held for more than five years.

BDO set the settlement date for the LTNCDs on Oct. 15, 2012.

The LTNCDs will support the bank’s medium-term growth objectives and help lengthen the maturity profile of its deposit base.

Deutsche Bank AG, Manila Branch and HSBC acted as joint lead arrangers and selling agents for the LTNCD, while BDO and BDO Private Bank were the other selling agents.

In July this year, BDO raised over $1 billion in core capital through a 1:3 rights offer to support its medium-term growth objectives and meet the Basel III capital requirements ahead of schedule.

Basel III is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk.

BDO had announced the plan to issue some $2 billion Euro Medium Term Note (EMTN).

At present, BDO has one of the largest distribution networks with more than 750 operating branches and over 1,700 ATMs nationwide.

Todate, BDO is the country’s largest bank in terms of total resources, customer loans, total deposits and assets under management.