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.