March 04, 2013

P5 billion worth of Long Term Negotiable Certificates of Deposit to be Issued by BDO


BDO Unibank Inc. which is led by Henry Sy and family has announced that they have a plan to issue up to P5 billion worth of Long Term Negotiable Certificates of Deposit (LTNCDs) as part of the bank’s effort to lengthen the maturity profile of its funding sources and support its medium-term growth objectives.

The LTNCDs will carry a maturity, with periodic coupon or interest payments during the life fot he deposit.

LTNCDs are also covered by deposit insurance with PDIC with a maximum of P500,000 per depositor.

“The indicative pricing will be in the 4 percent area and will be finalized at the end of the offer period,” BDO mentioned.

“Interest will be paid quarterly and will be tax exempt for individual investors if held for more than five years. The minimum investment is P100,000 with increments of P50,000,” the bank added.

The offer period for the said issuance is from March 4 to March 15, 2013 with the issue date set for March 25, 2013.

“BDO, however, reserves the right to adjust the timing of the offer as needed,” the bank said.