BDO Unibank Inc., the largest lender in the country controlled by the Sy family, raised P7.3 billion through the offering of long-term negotiable certificates of deposits, or LTNCDs.
The bank said in a statement Friday it had to raise the offer amount to P7.3 billion from the original P5 billion, and shortened the offering period by one day due to strong demand from investors.
“BDO Unibank Inc.’s offering of long-term negotiable certificates of deposit was driven by solid demand from retail and institutional investors, resulting in total subscriptions of P7.3 billion, almost 1.5 times the original offer,” it said.
“As a result, the issue was upsized from the original offer of P5.0 billion, and the offer period was shortened to April 4, 2019 (from April 5). This latest tranche of LTNCDs has a term of five and a half years with interest rate set at 5.375 percent per annum,” it said.
The issue date is scheduled on April 12, 2019, while the maturity date will be on Oct. 12, 2024.
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 with Philippine Deposit Insurance Corp. up to a maximum of P500,000 per depositor, and negotiability subject to market conditions.
“The LTNCD issuance is part of the bank’s efforts to lengthen the maturity of its funding sources and support business expansion plans,” it said.
Deutsche Bank AG, Manila branch acted as the sole lead arranger and selling agent for the issue, while BDO and BDO Private Bank are the other selling agents. BDO Capital and Investment Corp. served as BDO’s financial advisor.
Meanwhile, the bank announced it would launch the next phase of its system upgrade this coming Holy Week, following last month’s successful implementation of key improvements involving its electronic banking services.
As a result, the following services—ATM, mobile and online banking, and debit and cash card transactions—will be temporarily inaccessible to clients starting 8 p.m. on April 19 (Good Friday) to 12 noon on April 20 (Black Saturday).
Branches will be closed from April 18 (Maundy Thursday) to April 21 (Easter Sunday) in observance of the Holy Week. Regular operations will resume April 22.