BDO stretches out debt maturity
MANILA, Philippines—The country’s largest bank, Banco de Oro Unibank, has completed a P5-billion offering of long-term negotiable certificates of time deposit (LTNCDs) meant to stretch out its debt maturity profile.
BDO sold LTNCDs with a maturity of five-and-a-half years at a coupon rate of 3.8 percent per annum, higher than the 2-3 percent average range for regular time deposits in the local banking industry to date.
The bank closed its LTNCD offering on Wednesday after an offering period of only three days, citing oversubscription from retail and institutional investors.
Interest will be paid quarterly and will be tax-exempt for individual investors who hold the LTNCDs for at least five years. The settlement date is on 25 March.
“The LTNCDs will support the bank’s medium-term growth objectives and help lengthen the maturity profile of its funding sources,” the bank said.
ING Bank N.V. and Standard Chartered Bank acted as the joint lead arrangers and selling agents for the LTNCDs, while BDO and BDO Private Bank were the other selling agents.
Get Inquirer updates while on the go, add us on these apps:
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94