BDO completes P5-B fund-raising
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.
Get Inquirer updates while on the go, add us on these chat 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