BDO completes P5-B fund-raising

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MANILA, Philippines–Banco de Oro Unibank has completed a P5-billion fund-raising from the offering of seven-year deposits at a coupon rate of 3.5 percent per annum.

In a disclosure to the Philippine Stock Exchange on Monday, BDO said its offering of long-term negotiable certificates of deposits (LTNCDs) ended on Aug. 30 and was “oversubscribed by a good mix of retail and institutional investors.”

LTNCDs are negotiable certificates of time deposit with a designated maturity or tenor representing a bank’s obligation to pay the face value upon maturity as well as make periodic coupon or interest payments during the life of the deposit. These deposits are covered with deposit insurance with the Philippine Deposit Insurance Corporation up to a maximum of P500,000 per depositor.

Interest on BDO’s LTNCDs will be paid quarterly and will be tax exempt for individual investors if held for at least five years. The issue date is set for September 12.

“The LTNCDs will support the bank’s growth objectives and help lengthen the maturity profile of its funding sources,” the bank said.

Standard Chartered Bank and ING Bank N.V. Manila Branch acted as joint lead arrangers, selling agents and market makers for the LTNCD, while BDO and BDO Private Bank were the other selling agents.

BDO is the country’s largest bank in terms of total assets, loans, deposits, capital and trust funds under management based on published statements of condition as of end-June.

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  • Mario_Garcia

    Big profit for BDO, cost of 3.5% lending at more than 10%.

    • DIGOYBULOY

      ang dami mong reklamo.. why dont you make your own bank and offer 4% if its “big profit” as you said.. ung lupa ba kung saan ang banko, libre ba yun? ung mga empleyado ba nila, libre ba yun? yung inflation ba hindi applicable sa BDO? astounding ang katangahan mo

      • Mario_Garcia

        Hindi naman ako nagrereklamo, I just stated that the bank knows how to make good profit. Ang dami mong sinabi! Ang init ng ulo mo kaya nagiging mangmang ka na.

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