LTNCD is a certificate of indebtedness of a bank with a designated maturity.
The bank’s current LTNCDs will fall due on 2010 with an annual interest rate of 9.73 percent, payable on a quarterly basis.
The selling agents are BDO Capital & Investment Corp., BDO Private Bank, BDO Securities Corp. and Standard Chartered Bank.
BDO said previously that issuance of LTNCDs is intended to "diversify the maturity profile of the bank’s deposits while the net proceeds will be used to replace existing short-term funding and/or to expand the asset base through loans and debt securities."
LTNCDs are sold to individuals, corporations and institutional investors.
BDO subsidiaries and other affiliates are banned from buying the certificates of deposits.
According to BDO, LTNCDs as a bond-hybrid deposit are "high-yielding instruments that are negotiable."