BDO Unibank Inc. (BDO) has upsized the sale of its long-term negotiable certificates of deposit (LTNCDs) to P7.5 billion from P5 billion originally on strong demand from both retail and institutional investors.
BDO reported the LTNCD offer was more than two times oversubscribed.
It closed the offer period on Wednesday for the LTNCDs, two days ahead of schedule.
The LTNCD issuance is intended to lengthen the maturity profile of the bank’s funding sources, as well as support its medium-term growth plans.
The latest tranche of LTNCDs has a term of five-and-a-half years with a final interest rate of 3.75 percent per annum.
The issue date is set for April 6, 2015, while the maturity date is on October 6, 2020.
Other features of the LTNCD include tax exemption on interest income for individual investors if held for at least five years.
It has quarterly interest payments, a deposit insurance coverage with the Philippine Deposit Insurance Corp. up to a maximum of P500,000 per depositor and negotiability subject to market conditions.
ING Bank N.V. Manila branch and Standard Chartered Bank were the joint lead arrangers and selling agents for the issue, while BDO and BDO Private Bank are the other selling agents.
The bank thanked its clients and the investing public for their continued confidence and support.
Genivi Factao