BDO to redeem P15B worth of debt notes

A+
A
A-

The country’s largest lender BDO Unibank is set to redeem ahead of maturity P15 billion worth of debt notes qualifying as tier 2 or supplementary capital.

 

“The early redemption of these tier 2 notes is in line with the Bangko Sentral ng Pilipinas’ new regulations on bank capital (Basel 3) that will not recognize BDO’s existing unsecured subordinated debt as tier 2 qualifying capital,” the bank told the Philippine Stock Exchange on Wednesday.

 

BDO is set to redeem on Sept. 27 some P8.5 billion of the tier 2 notes while another series worth P6.5 billion will be retired on Oct. 7 this year. They will all be redeemed at a price equal to the par value plus accrued and unpaid interest.

 

As of end-June, BDO’s capital adequacy ratios to risk assets also remained above the regulatory minimum at 18.3 percent overall and 15.6 percent for core or tier 1 capital ratio. The bank has long prepared for the implementation of Basel 3 framework with a $1-billion stock rights offering last year that boosted its tier 1 capital base.

 

In the first semester, BDO posted a record-high net profit of P14.1 billion, more than double the level posted in the same period last year, as unprecedented trading gains complemented growth in interest earnings. With net income for the period already representing more than two-thirds of its P20.4 billion guidance for 2013, the bank is optimistic of hitting its yearend target.

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

editors' picks

advertisement

popular

advertisement

videos