BDO Tier 2 notes oversubscribed

MANILA, Philippines - Banco De Oro Unibank Inc. (BDO) has closed its offer of peso-denominated unsecured subordinated notes qualifying as Tier 2 capital last Thursday, a day ahead of the original scheduled close. The issue generated strong demand from various retail and institutional investors that led to a more than two and a half times oversubscription of the original P3-billion offer size. The notes were priced at 6.375-percent per annum and will have a maturity of 10 years and three months from issue date, which is set for Oct. 7, 2011. A call option is exercisable by the BDO after five years and one day from issue date. This transaction is the fifth successful issuance of T2 Notes by BDO, designed to supplement its capital position and support its business expansion plans. This issue also completes BDO’s P15-billion T2 program approved by the Bangko Sentral ng Pilipinas (BSP). The joint lead arrangers and selling agents for the transaction were Deutsche Bank AG (Manila branch) and The Hongkong and Shanghai Banking Corp. Ltd. (HSBC). Standard Chartered Bank, BDO Private Bank Inc. and Multinational Investment Bancorporation also acted as selling agents for the issue.

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