MANILA, Philippines - With the suspension of work in Metro Manila early this week due to the monsoon rains, BDO Unibank Inc. has extended the offer period for its latest tranche of long-term negotiable certificates of time deposits (LTNCDs).
BDO said the offer has been extended to Aug. 30, instead of the earlier Aug. 27 close, with issue date now set for Sept. 12.
BDO is issuing another P5 billion worth of LTNCDs as part of efforts to lengthen the maturity profile of its funding sources and support its growth objectives.
In March this year, BDO issued P5 billion worth of LTNCDs.
The new tranche of LTNCDs will mature in seven years. The indicative pricing will be in the range of 3-3.25 percent per annum and will be finalized at the end of the offer period.
Interest will be paid quarterly and will be tax exempt for individual investors if held for at least five years.
The minimum investment is P100,000, with increments of P50,000.
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 an attractive investment specially for individuals, as interest income is exempt from withholding taxes if the LTNCDs are held for at least five years.
These debt papers are covered by deposit insurance with the PDIC up to a maximum amount of P500,000 per depositor.