BDO sets interest rate for P1.5-B notes at 9.73% per year

Banco de Oro Universal Bank (BDO) has fixed the interest rate of its P1.5-billion long-term negotiable certificates of deposit (LTNCD) at 9.73 percent per annum, to be issued on Nov. 23 for a term of five years and one day.

BDO said the lead arranger, underwriter and market maker for the notes issue is Standard Chartered Bank, paying agent is the Philippine Depository and Trust Corp. (PDTC), while the selling agents are BDO Capital and Investment Corp., BDO Securities Corp., and BDO Private Bank Inc.

The Bangko Sentral ng Pilipinas (BSP) has allowed BDO to issue up to P2.9 billion worth of LTNCDs in case of oversubcription.

To date, the expanded commercial bank of the SM Group has issued a total of P3.6 billion LTNCDs which is part of the P5 billion approved by the BSP for the year.

An LTNCD is a certificate of deposit issued by banks with a maturity of at least five years. Unlike regular time deposits, an LTNCD may be negotiated over its life. Banks issue LTNCDs to lengthen the maturity profile of their deposits and match fund their long- term assets.

BDO ranks among the top eight banks in the Philippines in terms of total deposits, net loans, and capital assets.

Its consolidated total assets stood at P212.3 billion as end-September this year while total capital funds were recorded at P18.8 billion.

The bank provides a wide range of corporate, commercial, and retail banking services. These services include traditional loan and deposit products, as well as treasury, trust banking, investment banking, cash management, insurance, retail cash cards and credit card services.

BdO is controlled by the SM Group of the family of Henry Sy Sr. which controls 49.6 percent of total equity as of end-June this year. The SM group is also the majority stakeholder in Equitable PCI Bank and China Banking Corp.