BDO Unibank Inc., the country’s biggest lender controlled by tycoon Henry Sy, increased the offering of its long-term negotiable certificates of deposits to P8.2 billion from P5 billion due to strong demand from both retail and institutional investors.
BDO said in a statement Friday total subscriptions to the LTNCD offering scheduled from April 20 to April 28 reached P12.3 billion, almost 2.5 times the original offer.
“As a result, the issue was upsized from the original P5.0 billion to P8.2 billion. BDO likewise shortened the offer period for its LTNCD to April 26, 2018, two days ahead of schedule,” the bank said.
The latest tranche of LTNCDs has a term of five and a half years with interest rate set at 4.375 percent per annum. The issue date is set on May 7, 2018, while the maturity date will be on Nov. 7, 2023.
Other features of the LTNCD include a tax exemption on interest income for individual investors if held for at least five years, quarterly interest payments, deposit insurance coverage with the PDIC up to a maximum of P500,000 per depositor and negotiability subject to market conditions.
The LTNCD issuance is part of the bank’s efforts to lengthen the maturity of its funding sources and support business expansion plans.
BDO tapped Deutsche Bank AG, Manila branch and ING Bank N. V., Manila branch as the joint lead arrangers and selling agents for the issue, while BDO and BDO Private Bank were the other selling agents.
BDO this year expects a record P31-billion net income following a remarkable performance in 2017.
The bank posted a 7-percent increase in net income last year to a record P28.1 billion on strong growth across all business segments. It also matched the earnings guidance for the year.
The bank said it was optimistic it could realize another record earnings this year as it “leverages on its strong business franchise and expands in underserved markets amid a challenging and competitive operating landscape.”
The bank reported a net income of P5.9 billion in the first quarter of 2018, steady from the year-ago level.
