BDO issues P5-B LTNCD

MANILA, Philippines - BDO Unibank Inc. (BDO) will issue another tranche of up to P5 billion worth of long-term negotiable certificates of deposit (LTNCD), with an offer period from March 16 to 27 this year.

The issue was undertaken as part of the BDO’s efforts to lengthen the maturity of funding sources and support its growth objectives. It last issued P5 billion worth of LTNCDs in December 2013.

The LTNCDs will have a term of five and one half years, with indicative pricing to be finalized at the end of the offer period. Interest will be paid quarterly in arrears.

The minimum investment is P100,000 with increments of P50,000. The offer period is slated from March 16-27, with the issue date set on April 6, 2015.

However, the bank reserves the right to adjust the timing of the offer as needed.

ING Bank N. V. Manila branch (ING) and Standard Chartered Bank (SCB) are the joint lead arrangers and selling agents for the issue, while BDO and BDO Private Bank are the other selling agents.

LTNCDs are negotiable certificates of deposit with a designated maturity, and represent a bank’s obligation to pay the face value upon maturity, with periodic coupon or interest payments during the life of the deposit.

These are an attractive investment especially for individuals, as interest income is exempt from withholding taxes if the LTNCDs are held for at least five years. LTNCDs are covered by deposit insurance with the PDIC up to a maximum of P500,000 per depositor.

BDO is a full-service universal bank, with one of the largest distribution networks of over 870 operating branches and over 2,600 ATMs nationwide.

It also has a branch in Hong Kong as well as 28 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.