BDO shortens LTNCD offer

MANILA, Philippines - BDO Unibank Inc. (BDO), the main banking unit of retail tycoon Henry Sy Sr., has cut short the offer period for its P5-billion long term negotiable certificates of deposit (LTNCD) due to oversubscription.

In a statement yesterday, BDO said the issue was well received by both retail and institutional investors, resulting in early oversubscription.

To best accommodate investor demand, BDO said it is ending the offer period ahead of the original schedule.

This latest tranche of LTNCDs has a term of five and a half years, with a final interest rate of 3.125 percent per annum. 

The issue date is set for Dec 11, 2013, while the maturity date is on June 11, 2019.  Other features include: tax exemption on interest income for individual investors if held for at least five years, quarterly interest payments, deposit insurance coverage with the PDIC up to a maximum of P500,000 per depositor, and negotiability subject to market conditions.

The LTNCD issuance is intended to lengthen the maturity profile of the bank’s funding sources as well as support its medium-term growth objectives.

The Hongkong and Shanghai Banking Corp. (HSBC) and Deutsche Bank (DB) are the joint lead arrangers and selling agents for the issue, while BDO, BDO Private Bank and Multinational Investment Bancorporation (MIB) are the other selling agents.

BDO has one of the largest distribution networks in the country with more than 800 operating branches and over 2,100 ATMs nationwide. 

It also has a branch in Hong Kong as well as 13 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

BDO ranked as the Philippines largest bank in terms of total assets, loans, deposits, capital and trust funds under management as of end-September this year.