BDO Unibank Inc., the largest lender controlled by tycoon Henry Sy, said Friday its offer of P5 billion worth of long-term negotiable certificates of deposits was oversubscribed on strong demand from both retail and institutional investors.
The issue was increased from the original offer of P5.0 billion to P11.8 billion, representing almost 2.5 times the offered amount. As a result, BDO shortened the offering period for its issue to Aug. 10, 2017, a day ahead of schedule.
“This transaction is the largest single issuance to date of LTNCDs by a local bank,” BDO said.
The latest tranche of LTNCDs has a term of five and a half years with the interest rate set at 3.625 percent per annum. The issue date is slated on Aug. 18, 2017, while the maturity date will be on Feb. 18, 2023.
Other features of the LTNCD include tax exemption on interest income for individual investors if held for at least five years, quarterly interest payments, deposit insurance coverage up to a maximum of P500,000 per depositor and negotiability subject to market conditions.